Metro Global Media Announces Possible Sale of Fanzine International
Posted on June 21, 1999Metro Global Media, Inc. has announced that the Board of Directors has voted to explore its options relating to its newly acquired mainstream publishing company, Fanzine International, Inc. These options include, but are not limited to, a spin-off, sale, merger or rights offering.
Metro Global Media, Inc. acquired Fanzine on July 31, 1998. Fanzine publishes Celebrity Style, Teen Celebrity, Celebrity Style 101 Hairstyles, Gym, Burn, Blast and other popular consumer publications.
Metro Global's Chief Financial Officer, Janet Hoey, stated, "The Board has decided to proceed in this matter with the goal to unlock Fanzine's true value, as well as to increase Metro Global Media's shareholder value. Fanzine has appreciated considerably in a short time and projections indicate this growth will continue. Management believes that splitting the two companies would allow Fanzine to continue its steady growth, while being in a position to independently and more effectively capitalize on its earning potential. Metro Global and its stockholders would benefit considerably by gaining additional working capital for its planned expansion, while still retaining a significant interest in Fanzine."