NTN Receives $1.86 Million of Cash Proceeds From Completion of LearnStar Sale; NTN Plans To
Deploy Proceeds For Anticipated Network Upgrade
BusinessWire, Tuesday, June 16, 1998 at 14:34
CARLSBAD, Calif.--(BUSINESS WIRE)--June 16, 1998--NTN
Communications, Inc. (AMEX:NTN) today announced it has received $1.86
million of cash proceeds from the sale of 82.5% of the equity of
LearnStar, Inc., its interactive educational unit, to NewStar Learning
Systems, L.L.C. (NewStar). NTN retains a 17.5% interest in LearnStar
following the sale.
LearnStar contributed net losses of approximately $800,000 in
1997, and $19,000 in 1998, to NTN's consolidated financial statements.
NTN expects to record a gain of approximately $2 million on the sale
in its quarter ended June 30, 1998, excluding any residual expenses
associated with the sale and the subsidiary's operations.
Gerald Sokol, Jr., president and chief executive officer of NTN
Communications, said, "Proceeds from the sale of LearnStar will be
designated for planned technology enhancements to the NTN Network, our
hospitality division." Sokol added, "I believe that NewStar will
provide the experienced management and the capital necessary to build
LearnStar into a successful educational technology company, and we are
pleased that NTN will retain an equity interest in the business."
Sally A. Zoll, president of LearnStar, and Joe King, a partner
with former NTN Director Ed Frazier in Frazier/King Media Holding,
each have an equity interest in NewStar. As previously announced, Ed
Frazier has resigned from the NTN Board of Directors effective upon
the completion of the sale. This decision was taken to avoid any
appearance of conflict in the future given that NTN and LearnStar, in
which Frazier's partner has a substantial interest, will have an
ongoing business relationship.
[...]
So Dwight, I get 1.86M + 0.2M from Omnigon is greater than 2M (Well, just barely. I guess Jerry is looking out for my interests :-)
Cheers,
Rich |
