INTERNET--(esecurities.W)--May 6, 1999 - Riddell Ends Internet Joint Venture
NEW YORK, May 5 /PRNewswire/ -- Riddell Sports Inc. (Amex: RDL - news) announced today, by mutual agreement with its planned partners, that it would no longer seek to form a joint venture company for the Internet. The Company also indicated that it would significantly expand its existing web sites and develop new ones employing the strategies formulated in recent months and expects to maintain the implementation schedule previously announced.
Commenting on the reasons for discontinuing the joint venture negotiations, David Mauer, CEO of Riddell, said, ''When you cut through it, we became increasingly uncomfortable with the loss of control that came with this particular joint venture structure. The Internet environment is changing rapidly, and as the documentation became more detailed, it was apparent that we could not further both the joint venture's interests and have a sufficiently flexible arrangement to meet our Company's needs over the term of the agreement.''
Mr. Mauer continued, ''One of the benefits of the contemplated joint venture structure was that Riddell was not required to fund any of the venture's expenses for a series of very extensive and costly web sites. We believe that an appropriate trade-off, in order to maintain better control over the Company's Internet efforts, is for us to build and to effect the funding of less costly, but highly effective web sites. As we proceed to implement the Company's Internet operations, however, we will remain flexible, and we are likely to explore strategic partnerships and financial investors should the appropriate opportunity arise.''
Robert Lessin, Chairman of Dawntreader Fund I, LLP which was one of the potential partners in the joint venture, said, '' Despite everyone's best efforts, we could not organize the venture in a manner that could serve the best interests of all of the parties. I believe that Riddell's strategies for the Internet make a lot of sense and expect that they will be able to successfully leverage their unique access to millions of pre-teen and teenage cheerleading and sports participants..."
SOURCE: © 1999 Wednesday May 5, 4:47 pm Eastern Time
Company Press Release Riddell Sports Inc. biz.yahoo.com |
