[ PW Home ] [ Bestsellers ] [ Subscribe ] [ Search ]

Publishers Weekly News

NewStar Raises Additional Capital
-- 9/14/98
NewStar Media announced two financial moves last week that it hopes will help move the company back to profitability. In the larger transaction, NewStar completed a private placement of $5.5 million of its stock to Terrence Elkes, Kenneth Gorman and Ronald Lightstone, all of whom are members of Media Equities International, an investment firm that already owns a controlling interest in the former Dove Entertainment. With the new investment, Elkes has been named chairman of NewStar's board and Gorman vice chairman.
NewStar also announced the sale of its office building, for approximately $4.2 million. After payment of the existing mortgage, NewStar will have a cash surplus of $2.3 million. Lightstone, NewStar's president and CEO, said the proceeds from the private placement and the sale of the building will be used to expand the company's audio book publishing and television programming production businesses.

For the first half of 1998, NewStar reported total sales of $10.3 million, up from $6.4 million in the first six months of 1997. The company's net loss was cut to $2.3 million from $8.3 million.

Sales in the company's publishing group fell to $3.5 million from $3.7 million, largely due to a curtailed book-publishing program. Expenses in the unit were nearly cut in half in the period, resulting mainly from lower returns of books and decreased production and distribution costs associated with its audiobook line.

The film group saw sales increase 151%, to $6.8 million, primarily due to delivery of the television movie Futuresport, as well as from completion of the syndicated show Make Me Laugh.
Back To News
Search | Bestsellers | News | Features | Children's Books | Bookselling
Interview | Industry Update | International | Classifieds | Authors On the Highway
About PW | Subscribe
Copyright 2000. Publishers Weekly. All rights reserved.