Random, Ellenbogen Make Bid for Golden Books
Jim Milliot -- Publishers Weekly, 7/30/2001
Random House has teamed up with Classic Media to make a competing bid for Golden Books' assets. The new offer, filed just before the July 24 deadline, is for $86 million in cash and the assumption of $30 million in liabilities. The cash portion is higher than the $80 million offered by DIC Entertainment, but DIC's proposal also includes the assumption of $90 million in liabilities.
Rumors had circulated at BookExpo America that Random was preparing a bid for Golden, but faded after the agreement with DIC was announced. Random House spokesperson Stuart Applebaum told PW that Random "believes Golden's proprietary and branded and licensed properties would be well served as part of Random House Children's Books." Random's partner in the bid, Classic Media, is a producer of children's television programming and is headed by former Golden executive Eric Ellenbogen. If the Random-Classic bid is successful, Random would take Golden's book assets and Classic the film and video properties.
An auction was set for last Friday, July 27, where final offers were to be made. Although Golden can chose which bid it prefers, the deal must be approved by the bankruptcy court at an August 1 hearing.
