Random Bid for Golden Needs Court Approval
Jim Milliot -- Publishers Weekly, 8/6/2001
Random House and Classic Media have reached an agreement to acquire the assets of Golden Books, but the deal cannot be concluded until it receives the approval of the judge overseeing Golden's bankruptcy proceedings. After a day-long hearing on August 1, judge Roderick McKelvie adjourned the hearing until August 15 to give parties that objected to the transaction time to file arguments. A wild card in the process could be HarperCollins, which is supporting DIC's bid for Golden with $35 million to $37 million in financing.
Random and Classic, headed by former Golden executive Eric Ellenbogen, made a last-minute bid late last month for Golden's assets, offering about $86 million in cash and the assumption of $30 million in liabilities. The offer was deemed more attractive than the bid made by DIC Entertainment. Another factor in Golden's decision to take the Random bid was the concern that DIC would having financing problems—a concern alleviated by HC's cash.
