Mediabistro Sells to Prometheus Global Media for $8 Million
The companyâ€™s valuation dropped a reported $15 million from its 2007 sale.
Mediabistro announced its sale to PGM-MB Holdings, a wholly-owned subsidiary of Prometheus Global Media, through its FishbowlNY vertical on Thursday, disclosing that the deal is worth $8 million. Prometheus, who publishes Billboard, Adweek and The Hollywood Reporter, will retain all of Mediabistro's editorial and e-commerce assets.
The editorial assets include the flagship site mediabistro.com, TVNewser, AgencySpy, Galleycat, plus the company's job board and educational products. Not included will be the company's trade show division and its related sites. Instead, CEO Alan Meckler will spin off his own company with those assets and will resurrect Mecklermedia.
To clarify, Mecklermedia was originally founded in the 90s, but transformed through a series of mergers and acquisitions. It's a difficult timeline to follow but, in essence, Mecklermedia was acquired by Penton Media in 1998 and its online assets were spun off as internet.com LLC. More internet.com acquisitions followed, including Jupiterimages, Earthweb and Jupiter Research, which led to the company's Jupitermedia rebranding. Jupiterimages was sold to Getty in 2009 and the company rebranded again, this time as WebMediaBrands Inc.
In 2007, Jupitermedia bought Mediabistro for a reported $20 million in cash, plus an additional $3 million to be paid off through 2009. Questions were raised then if the company was being overvalued. Now, 7-years later, those questions have been answered as the valuation dropped significantly with this sale. Not to mention the company's NASDAQ (MBIS) market cap sits at 6.54M.
The sale will be finalized in late July, pending stockholder approval.