DIC to Buy Golden Books for $170 Million4 Jun, 2001 By: Hive News
TV programmer DIC Entertainment Holdings Inc. reported Monday that it will purchase venerable children's publisher Golden Books for about $170 million.
Under terms of the agreement with DIC, Golden Books Family Entertainment Inc. and itsdomestic subsidiaries have filed a Chapter 11 bankruptcy petition and will seek approval for the sale under the Federal Bankruptcy Code.
Golden Books' 500,000-plus-title library includes classics such as Frosty the Snowman, Pat the Bunny, Poky Little Puppy, Rudolph the Red-Nosed Reindeer and Little Drummer Boy.
The company will continue operations during the bankruptcy and sale process, expected to take about 60 days.
Estimated worth of the deal is "about $73 million in cash, $7 million in notes issued by DIC Entertainment and...$90 million in (Golden Books) liabilities," said Philip Galanes, Golden Books' legal counsel, according to Reuters.
Galanes said Golden Books filed for bankruptcy Monday morning.
DIC's extensive catalog of children's animation programming includes "Sailor Moon," "Sabrina the Teenage Witch" and "Super Mario Bros."
The Golden Books library of more than 500,000 titles, 3,000 movies, TV series and specials and cartoons will join DIC's library of morethan 2,500 TV episodes.
"We believe the business combination when implemented will further extend out library of valuable branded characters as well as provide additional opportunities to leverage the powerful GoldenBooks brand," DIC chairman and c.e.o. Andy Heyward said in a statement.