Following the collapse of takeover talks with Vivendi [WAMN: 07-Jun-01], UK-headquartered online directory service Scoot.com 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