Private Investors Agree to £25m Scoot Funding

18 June 2001

Following the collapse of takeover talks with Vivendi [WAMN: 07-Jun-01], UK-headquartered online directory service has gained some breathing space, with a group of private investors agreeing in principle to put £25 million ($35.1m) into the loss-making business.

The new funding deal – yet to be signed – will consist of a loan secured against the cash flow of Scoot’s most prized asset, classified ad newspaper Loot, purchased last year for £178m [WAMN: 13-Jun-00]. However, a complete sale of Loot, now valued at £60–£70m, is thought unlikely except as a last resort.

Scoot continues to seek either a strategic partner or a trade sale.

News source: Financial Times