FUTURE NEWTORK PLC
20 July 1999
THE FUTURE NETWORK PLC
ACQUISITION OF GERMAN PUBLISHER
The Future Network plc ('Future'), the video game, home computing
and other specialist consumer magazines and Internet web sites
publisher, today announces that it has acquired Weka Consumer
Medien GmbH, a publisher of PC and video games magazines in
Germany, from its parent company Weka Firmengruppe GmbH.
This acquisition comes less than a month after the flotation of The
Future Network and is in line with the strategy outlined at that
time that Future would be seeking selective acquisitions that
enhance its market position in its target markets.
Weka Consumer Medien publishes four magazines - PC Player,
PlayStation - das Fun Magazin, Power Play and Video Games - and
has current monthly copy sales of approximately 300,000. As at
31st December 1998, Weka Consumer Medien had a turnover of DM 40
million (approx. £13.4 million) and a profit before interest and
tax of DM 2.98 million (approx. £1 million). In addition to
goodwill and the rights to the magazine titles, assets worth
approximately DM 100,000 are being acquired.
The terms of the acquisition are for a maximum consideration of DM
24 million (approx. £8 million) of which DM 20 million (approx.
£6.7 million) will be payable upon completion and a maximum of DM 4
million (approx. £1.3 million) as deferred consideration. The
exact amount of deferred consideration payable will be linked to
the interim results of Weka and is expected to be paid by 15
December 1999.
Commenting on the acquisition, Greg Ingham, Chief Executive of The
Future Network said:
'We have moved fast since our flotation in pursuit of our strategy
to strengthen our European market positions in our core video game
and home computing magazine market. Germany is Europe's largest
market for video game and home computing magazines and is
therefore an important target in our European expansion plans. We
are already the leading publisher of video game and home computing
magazines in the UK, France and Italy and have a significant
position in the US. The acquisition of Weka and our expected
success with the Sega Dreamcast magazine, now gives us a good base
from which to grow our position in Germany.'
Future established its German business in Munich in April 1999 and
was recently appointed by Sega to be the publisher in Germany of
the Official Dreamcast magazine. This magazine is scheduled for
launch in August 1999. The acquisition of Weka further
strengthens Future's German operations and brings a portfolio of
magazines that will complement Future's existing titles.
The German video game and home computing magazine market is the
largest in Europe, estimated to be worth over £1 billion in 1998
(source: Screen Digest). This acquisition significantly enhances
Future's German operations and provides an excellent platform from
which to further develop its business in this strategically
important market.
FOR FURTHER INFORMATION CONTACT:
The Future Network plc: 01225 442244
Greg Ingham, Chief Executive
Hogarth Partnership: 0171 357 9477
James Longfield/Chris Matthews
Background on The Future Network
The Future Network was founded in the UK in 1985. Since this time
it has become a leading international publisher of video game,
home computing and other specialist consumer magazines and
Internet web sites. Future is the UK's 4th largest consumer
magazine publisher and is the leading video game and home
computing magazine publisher in the UK, France, Italy and the US.
Headquartered in Bath, England, Future publishes over 100 titles
and employs some 1,200 people in offices in Bath, London, San
Francisco, New York, Paris, Milan and Munich. Future was floated
on the London Stock Exchange on 25 June 1999 and has a current
market capitalisation in excess of £620 million.
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