Just days before the last of the cash was forecast to drain from Scoot.com, in rode a white knight with a cash offer for the only profitable part of its business, the classified advertising newspaper Loot.
Altruism was not an element in the £45 million offer tabled by Daily Mail & General Trust, one of the UK’s largest and richest newspaper groups. As reported earlier this month [WAMN: 10-Aug-01], Scoot was reluctant to part with Loot, its only tangible asset, for which it last year paid £178 million in cash. But sheer desperation compelled it to accept a loss of £133m on the deal – presenting GM&DT with the bargain of the decade.
The sale leaves Scoot with just £10.5m in the bank after paying off its most pressing creditors, creating breathing space while it continues to hunt for a buyer or refinancing.
News source: The Times (London)