The New York Times Company (NYT) announced today that it has acquired Baseline StudioSystems, an online database and research service for information on the film and television industries, from Hollywood Media Corp. (HOLL) for $35.0 million in cash.
Mitchell Rubenstein, chairman and CEO of Hollywood Media Corp. said: "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, 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."
Janet L. Robinson, president and CEO of The New York Times added: "We are very excited about this acquisition, which underscores our strategy to pursue leadership positions in the digital space and in key content categories, 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..."
The Baseline database includes over 1.5 million records an enormous number of facts, analysis, statistics, news, contacts and trends on the entertainment industry. They are expected to reach around $6 million in revenue for 2006 and is said to be a highly profitable company by both participants in the deal.
The Times will receive tax benefits from the deal as they treat it as an asset purchase worth over $7 million.
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