The deal will enhance the Fund’s previous investment in Time Out Group Limited (“Time Out London”) announced on 25 November 2010 to create a global digital media group, (the “Time Out Group”).
Time Out New York magazine was established in 1995, and has recently begun to make the transition to digital, currently delivering content through its website to approximately 1 million unique users per month. In addition, Time Out New York controls the use of the Time Out brand across the United States of America (excluding Chicago), Canada, Mexico and countries in Central America and the Caribbean.
Globally, Time Out is present in 35 cities across the world, with a worldwide audience of 16 million across both print and digital channels. Its websites have over 7 million global unique users per month with page views in April 2011 exceeding 32 million.
The acquisition will build on Time Out Group’s ability to:
• Grow the brand’s reach in both wholly owned and managed territories and through its licensee network to over 50 cities;
• Expand Time Out Group’s digital strategy, by investing in the development of a single multi-channel online platform powered by a central content database and transaction engine; and
• Extend Time Out Group’s mobile content offering and transaction capability; to-date mobile application downloads have exceeded 1 million.
Tony Elliott Chairman and Founder of Time Out, said: “Our vision for the future of Time Out is to extend our online dimensions and by doing so accelerate from magazine publisher to digital media group. Our global heritage as a universally trusted brand and as the provider of essential information to, and insight for, going out in the world’s key cities uniquely positions us for this journey.
Oakley Capital has already proved to be an exciting, innovative and incredibly supportive business partner and we hope and expect the New York venture to prove equally successful on our continued worldwide expansion.”
The Time Out Group is planning continued international expansion into new territories.
David King CEO of Time Out added: "Time Out plans to be locally relevant in more than 50 cities around the world with an audience of over 50 million people across the world, receiving content in the way they want it.”
The investment in Time Out New York is anticipated to be synergistic and will enhance the Fund’s previous investment in Time Out Group Limited (“Time Out London”) announced on 25 November 2010, to create a global digital media group (the “Time Out Group”). In combination, Time Out New York and Time Out London control the worldwide rights to the Time Out brand (excluding Chicago).
As a result of the investment, the Fund holds 65.7% of Time Out New York and is investing alongside existing investors – investment vehicles controlled by the Clark Estates and the Louis-Dreyfus Family Office LLC. OCIL will provide senior debt and mezzanine financing of £5.1 million, with the Fund investing £9.1 million in equity financing. Together with the investment made in Time Out London, the financing provided by OCIL in senior debt and mezzanine financing and equity (through OCL’s 65% investment in the Fund) will total £25.5 million. The investment does not impact NAV.
Peter Dubens, Director of Oakley Capital Investments Limited, said: “We are delighted to be able to extend our relationship with such a globally trusted brand. The acquisition of Time Out New York gives the Fund a fantastic opportunity to consolidate the Time Out Group’s position as a leading provider of information on arts, entertainment, culture and food & drink right across the globe. The next 24 months will see the company build an entirely new, highly scalable digital transaction platform focused on providing its audience with a complete customer experience which combines market leading information and content with end-to-end booking capabilities.”
