Kaboose sells itself off
By Adnews Staff
Toronto-based online media company Kaboose has signed two agreements selling substantially all of its assets. The company has sold its UK division Bounty Group to a company controlled by funds managed by Barclays Private Equity for approximately $97 million in cash, less approximately $18 million in debt. It has sold its North American operations to Disney Online, a unit of Disney Interactive Media Group, for approximately $23.3 million. Kaboose plans to distribute the net proceeds, approximately 65 cents per share, to its stockholders. "With the fundamental shift in the sentiment of the capital markets in general and in the media and advertising sectors in particular, and having been approached by several large international media companies and global private equity institutions interested in our business, we felt compelled to re-examine our long-term plan," said Jason DeZwirek, chairman and CEO of Kaboose. "With the advice of our financial advisors, the company's board of directors determined that Kaboose could divest its assets and realize significantly greater value than we could deliver as an independent public media company in the foreseeable future."