Although I am not personally overly familiar with Key Brand Entertainment, I understand that they are a very large firm with interests all over the world. In particular, Key Brand Entertainment is a producer and distributor of live theatrical events in North America which include Broadway Across America productions that tour the entire United States and Canada. In addition Key Brand Entertainment owns several theaters in the U.S. and is a producer of Broadway Shows and London theater as well.
My understanding of the sale of Broadway.com to Key Brand Entertainment is that the company was purchased for $45 million dollars of which $20 million dollars will be paid in cash, $8.5 million dollars in additional payments over 5 years plus 12 % interest with the balance paid assuming Broadway.com meets certain requirements during this time period. Those requirements are usually aligned with future growth in ticket sales and profitability.
From my point of view this transaction makes perfectly good sense for Hollywood Media Corporation. Their stock over the past few years has done nothing but continue on a downward trend and if they need cash to continue to operate their core business, I can't think of anything better than someone giving them $20 million dollars in cash to shore up their books. I'm sure their stockholders will welcome the buyout as well.
I've been in the business of selling Broadway Show tickets myself for 32 years now and have followed Broadway.com's success for a long time. They have an amazing brand name and sell lots of tickets. Although I'm not sure about their service, my guess is that they probably do a pretty good job serving the public.
At Applause Ticket Agency (my company), we provide a very personal type of service to locals and out-of-towners alike that need good Broadway Show tickets at reasonable prices. Although we are a smaller competitor when compared to Broadway.com, we most likely both share in the excitement of all the wonderful live entertainment events taking place on New York City stages as well as providing an important service to the theater-going public.
I also hear that Jerome Kane, Broadway.com's Vice President of ticketing will continue in his role with the company as will Matt Kupchin, their President and COO . I know Mr. Kane personally and am sure that his experience in the business will help guide Broadway.com in the days ahead.
Good luck to our friendly competitors at Broadway.com.
Sincerely,
Rich Gladstone/Vice President
Applause Ticket Agency (NY State License #71AP1001029)
311 West 43rd Street, suite 601
NY,NY 10036
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