Prometheus Global Media, through a subsidiary, is buying Mediabistro Inc.'s (Nasdaq: MBIS) editorial and e-commerce assets for $8 million.
New York-based Mediabistro provides services for social media, traditional media and creative professionals, including an online job board, news and analysis, trade shows and events, online and in-person courses and research products. Mediabistro is selling its blogs, job board and education unit, including editorial properties TVNewser, AgencySpy and GalleyCat. Under a different name, the company will continue to produce tradeshows.
Mediabistro was founded in by feather boa-sporting Lourel Touby, who as a freelance writer in New York started throwing parties for members of the media in the dot com days of the '90s. Eventually, she started a website with money from activist investor Bill Ackman and investor Marty Peretz that included job boards and training services. In 2007, Jupitermedia, under CEO Alan Meckler, bought the company for $23 million. According to Touby's LinkedIn profile, she left Mediabistro in 2011.
Prometheus, headquartered in New York, owns several media properties, including the Hollywood Reporter, Billboard, AdWeek and Backstage.
In connection with the sale, Mediabistro plans to change its name to Mecklermedia Corp., which was the name of Meckler's previous Internet trade show and publishing company. The deal is designed to help the company to reduce debt, add working capital. After the sale closes, the company will focus on tradeshows surrounding Bitcoin, cryptocurrency and 3-D printing.
As of Dec. 31, Mediabistro was carrying a $290 million deficit, according to a filing with the U.S. Securities and Exchange Commission. The company had recently incurred losses, and said in a May 15 SEC filing that it planned to raise capital from debt, equity, or other financing.
Mediabistro received a notice from the Nasdaq exchange on April 2 notifiying it that it failed to maintain the minimum $2.5 million in shareholder equity to remain listed. The company said that it intends to list its stock on the OTCQX market.