NEW YORK & LOS ANGELES--(BUSINESS WIRE)--Aug. 28, 2006--The New
York Times Company announced today that it has completed the
acquisition of Baseline StudioSystems, a leading online database and
research service for information on the film and television
industries, from Hollywood Media Corp. for $35.0 million in cash.
Baseline is the primary supplier of proprietary entertainment
information in Hollywood, counting numerous studio and television
production companies among its subscribers. It also has a growing
syndication/licensing business that provides non-professional
entertainment information to leading consumer-oriented Web sites.
"We are very excited about this acquisition, which underscores our
strategy to pursue leadership positions in the digital space and in
key content categories," said Janet L. Robinson, president and CEO of
The New York Times Company. "This acquisition continues the
diversification of our online revenue base, thanks to Baseline's
reliable and growing subscription base and syndication/licensing
business. It supports our plan to build the authoritative online
destination for the entertainment consumer and for the industry.
Baseline's content aligns well with all of our Internet properties,
particularly NYTimes.com, which already has a strong entertainment
franchise on the Web. It will provide NYTimes.com with enhanced
content offerings and improved advertising opportunities in its
popular entertainment vertical."
"This transaction strengthens Hollywood Media Corp.'s ability to
focus on its remaining business units, including its core online
consumer content properties, Hollywood.com, Broadway.com, Theatre.com,
and its interest in MovieTickets.com," said Mitchell Rubenstein,
chairman and CEO of Hollywood Media Corp. "After a competitive
process, we are thrilled that The New York Times Company emerged as
the buyer. We have enjoyed working with The Times in various
relationships over the years and believe this is a win-win transaction
for both parties."
As a pre-eminent industry resource, Baseline is unique in the
breadth, depth, functionality and timeliness of the information it
provides to the entertainment sector. Its database has more than 1.5
million records with a vast array of facts, analysis, statistics,
news, contacts and trends on the entertainment industry. The Baseline
StudioSystems product is the merged result of Hollywood Media Corp.'s
separate acquisitions of Baseline and StudioSystems. Under Hollywood
Media Corp.'s management, Baseline StudioSystems became the leading
data service for entertainment industry professionals across the film,
television, media and financial industries.
Revenues for Baseline are expected to be approximately $6 million
in 2006, and its operations are highly profitable. The acquisition was
structured as a cash-for-stock purchase. The Times Company expects the
acquisition to have de minimis dilution in 2006 through 2007, before
adding to earnings in 2008. For tax purposes, the Times Company plans
to treat the acquisition as an asset purchase, leading to tax benefits
with a present value worth over $7 million.
For the first six months of 2006, Baseline's revenues were five
percent of Hollywood Media Corp.'s aggregate consolidated revenues for
that period. Hollywood Media Corp. does not anticipate incurring
material federal income tax expense from the sale, due to its net
operating loss carryforwards.
Under Times Company ownership, Baseline's operations will remain
in Santa Monica, Calif., under its current leadership, Rafi Gordon and
Alex Amin. It will be a separate unit reporting to Vivian Schiller,
senior vice president and general manager of NYTimes.com, and will be
part of The New York Times Media Group.
J.P. Morgan Securities Inc. acted as a financial advisor to
Hollywood Media Corp. on the transaction and Weil, Gotshal & Manges
LLP served as legal counsel.
Except for the historical information contained herein, the
matters discussed in this press release are forward-looking statements
that involve risks and uncertainties that could cause actual results
to differ materially from those predicted by such forward-looking
statements. These risks and uncertainties include general economic
conditions, as well as competition, that could influence the levels
(rate and volume) of Internet advertising and subscription and
licensing revenues. They also include other risks detailed from time
to time in each Company's publicly filed documents, including The New
York Times Company's Annual Report on Form 10-K for the year ended
December 25, 2005 and Hollywood Media Corp.'s Annual Report on Form
10-K for the year ended December 31, 2005. Such forward-looking
statements speak only as of the date on which they are made and the
Company making such statements undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new
information, future events or otherwise.
About The New York Times Company
The New York Times Company (NYSE: NYT), a leading media company
with 2005 revenues of $3.4 billion, includes The New York Times, the
International Herald Tribune, The Boston Globe, 15 other daily
newspapers, nine network-affiliated television stations, two New York
City radio stations and 35 Web sites, including NYTimes.com,
Boston.com and About.com. The Company's core purpose is to enhance
society by creating, collecting and distributing high-quality news,
information and entertainment.
About Hollywood Media Corp.
Hollywood Media Corp. (NASDAQ: HOLL) is a leading provider of
news, information and ticketing covering the entertainment and media
industries. Following the sale of Baseline StudioSystems, Hollywood
Media's businesses include: its Data Business division including
CinemaSource, EventSource, and ExhibitorAds; its Broadway Ticketing
division including Broadway.com, 1-800-Broadway, Theatre Direct
International, and London-based Theatre.com; and its Internet Ad Sales
division including Hollywood.com and the U.K.-based CinemasOnline.
Other Hollywood Media businesses include Hollywood.com Television, a
free VOD cable network, and Hollywood Media's minority interest in
MovieTickets.com.
CONTACT: For The New York Times Company:
Catherine J. Mathis, 212-556-1981
E-mail: mathis@nytimes.com
Paula Schwartz, 212-556-5224
E-mail: schwap@nytimes.com
or
For Hollywood Media Corp.:
Melissa Zukerman, 323-658-1555
Email: Melissa@pcommgroup.com
This press release can be downloaded from www.nytco.com
SOURCE: The New York Times Company
