Investors are forcing Time Out founder Tony Elliot to sell the New York and Chicago editions of the magazine. Time Out New York’s price tag is around $40 million.
“We don’t need to sell New York, this is entirely driven by the investors,” Eliot told the UK’s Times. “If somebody offers a sensible sum of money – if somebody offers $10 million, it won’t happen.”
The Times reports:
The investors put in somewhere between $10 million and $30 million – the figure has not been made public – to set up the New York title in 1995. Several attempts have been made to find a new partner over the years and Mr Elliott has never been able to generate enough profit to afford to buy them out himself.
Also for sale is Time Out New York’s share of the Chicago title, meaning that any buyer would take control of the brand in the United States. The three New York shareholders own half that business, with Joe Mansueto, the founder of investment research group Morningstar, owning the rest. The most recent set of accounts for Time Out Group Ltd, the London-based holding company, show a loss of £465,000 before tax for the 11 months to December 2006, on turnover of £22.7 million. A note to the accounts says that the share of losses in New York and Chicago amounted to £81,000 in that period.
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