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Microcap & Penny Stocks : GBFE - GOLDEN BOOKS FAMILY ENTMT INC -- Ignore unavailable to you. Want to Upgrade?

To: Manfred who wrote (110)	1/14/1999 8:23:00 AM
From: JEM	Respond to of 476

January 14, 1999 Disney Interest Lifts Golden Books Stock Shares of Golden Books Family Entertainment rose sharply Wednesday, a day after Michael Eisner, the chairman of Walt Disney Co., said that Disney might be interested in acquiring the troubled children's publishing company. Rumors of a deal have been around for months, but this was the first time Eisner was quoted on the subject. Speaking in New York at an event to introduce Disney's Internet venture with Infoseek Corp., Eisner said that his company had talked with Golden Books and could make a bid to buy it. Golden Books declined to comment on any pending sale, though it has hired the investment banker Allen & Co. to find an interested buyer. Its shares rose 43.75 cents Wednesday, to 75 cents. Golden Books stock has plummeted from a 52-week high of $11.875 last February. Golden Books has based children's books on Disney characters and films since 1932, and in 1997 paid $47.5 million for a five-year renewal of its license. Not only was the price more than any company previously had paid for a licensing deal, but it came as the popularity of Disney animated films like "Pocahontas" was falling short of previous hits. Since Disney is owed a large percentage of that deal, one publishing executive noted that Golden Books, which has been struggling financially and has a market value is $20.9 million, might not be able to fulfill its agreement. "If Golden Books goes bankrupt, Disney won't get paid," the executive, who spoke on the condition of anonymity, said. "So it could be cheaper for them to buy the company." ------------------------------------------------------------------------ Copyright 1999 The New York Times Company