Purchased for $5 Million by Unnamed Buyer

Digital media company Salon Media Group is for sale, including intellectual property rights and the website, according to a May 8 filing with the U.S. Securities and Exchange Commission. The sale price is $5 million and “ LLC” is named as the buyer, but it is not clear who owns or represents the buyer.

A 10% deposit of $500,000 has already been made. This will be part of the $550,000 due in cash at closing, $100,000 of which will be deposited into escrow. The balance of $3.85 million is due in two installments over the next two years, half due at 12 months and the remainder at 24 months, secured by promissory note.

The deal also includes an “earn-out payment provision” where the buyer agrees to pay Salon up to $500,000 if the net revenue of the company in 2019 exceeds the net revenue target of $4.2 million. The asset purchase agreement can be terminated at any time prior to the closing date of the sale, before or after the approval of Salon stockholders.

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SOURCE: Dana E. Neuts
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