Leaf Group Announces Completion of Content Deal with Hearst Newspapers

Rhea-AI Summary

Leaf Group Ltd. (NYSE: LEAF) announced the completion of its content migration with Hearst Newspapers, receiving a final $5.5 million payment. This follows the transfer of content valued at $9.5 million, which included an initial payment of $4 million upon signing. Leaf Group will collaborate with Hearst for ongoing site management and content creation. As of July 31, 2020, Leaf Group reported a cash balance of $29.7 million, positioning the company for continued operational activities and engagement within its diversified consumer internet portfolio.

Positive

• Received final payment of $5.5 million, completing a total of $9.5 million from Hearst.
• Ongoing collaboration with Hearst expected to enhance content management.

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• None.

SANTA MONICA, Calif., Aug. 24, 2020 (GLOBE NEWSWIRE) -- Leaf Group Ltd. (NYSE: LEAF), a diversified consumer internet company, today announced the completion of the content migration contemplated by the Asset Sale & Services Agreement with Hearst Newspapers and receipt of final payment from Hearst of $5.5 million.

Under the previously announced agreement, Leaf Group transferred ownership of a library of content displayed on selected Hearst websites to Hearst Newspapers in exchange for $9.5 million, of which the initial $4 million was paid at signing. Over the next three years, Leaf Group will continue to work closely with Hearst to manage these sites and create helpful and engaging content for its readers.

As of July 31, 2020, Leaf Group’s cash and cash equivalents balance was $29.7 million.

About Leaf Group:
Leaf Group Ltd. (NYSE: LEAF) is a diversified consumer internet company that builds enduring, creator-driven brands that reach passionate audiences in large and growing lifestyle categories, including fitness and wellness (Well+Good, Livestrong.com and MyPlate App), and home, art and design (Saatchi Art, Society6 and Hunker). For more information about Leaf Group, visit www.leafgroup.com.

Media Contacts:
Sharna Daduk
VP, Communications
Sharna.daduk@leafgroup.com

FAQ

What recent financial transaction did Leaf Group (LEAF) complete with Hearst Newspapers?

Leaf Group completed a content migration and received a final payment of $5.5 million from Hearst, part of a total agreement worth $9.5 million.

How much cash did Leaf Group (LEAF) report as of July 31, 2020?

As of July 31, 2020, Leaf Group reported a cash and cash equivalents balance of $29.7 million.

What is the value of the agreement Leaf Group (LEAF) entered into with Hearst?

The agreement with Hearst was valued at $9.5 million for the transfer of content.

What does Leaf Group (LEAF) aim to achieve through its partnership with Hearst Newspapers?

Leaf Group aims to provide ongoing management and create engaging content for the Hearst websites as part of the partnership.