TULIP Computers sells Commodore to YMV Inc.
(2004-12-27)
Tulip Computers NV (Tulip Computers) signed a Letter Of Intent (LOI) with Yeahronimo Media Ventures Inc. (YMV) stating that Tulip Computers sells her subsidiary Commodore International BV for an amount of 24 million. With this takeover YMV will get full control of the brand Commodore in order to further develop a worldwide entertainment concept.
Transaction
Both companies will during the forthcoming weeks, including a due diligence investigation, based on this LOI conclude a final Agreement. The takeover concerns the immediate transfer of all rights concerning the brand Commodore inclusive the current portfolio, the recently started projects and partnership agreements. The guaranteed sales price of 24 million, which partly is related to future revenue of Commodore activities, will be paid in installments latest at October 31, 2010. Tulip Computers expect a contribution of approximately 4 million for result of 2004.
Immediately after signing of the formal Agreement, Tulip Computers will deliver the majority of the shares of Commodore International BV to YMV. The delivery of the remainder of the shares of Commodore International BV will made in installments according the realization of the agreed payment schedule. Besides the initial transaction parties agreed that Tulip Computers will remain active in the sales network of YMV including a supportive role in the development of Commodore. Tulip Computers also remains the right in the net proceeds deriving from infringements made on intellectual property rights in the period before the transaction.
Growth Strategy
This transaction allows Tulip Computers to focus more rapidly on the targeted growth of the remaining core activities. For Tulip Computers expansion and innovation of the current portfolio is an important aspect of its strategy. This means that there will be a strong focus on the expansion possibilities inside and outside Europe for its constantly growing Conceptronic brand. Besides this expansion, the Commodore transaction creates the opportunity to speed up the development of the recently acquired tablet PC product line. Tulip Computers' subsidiary in Taiwan, develops and distributes these innovative tablet PCs worldwide under the brand name PaceBlade.
The current product portfolio of Tulip Computers also exists of a Tulip product line for the medical market and consultancy and training activities offered through its education center New Level.nl Besides goal oriented changes and new initiatives within the subsidiaries, Tulip Computers will also focus on innovative products and services like the recently acquired interest in the Tulip Ego, a distinctive lifestyle notebook.
Tulip Computers' goal is to grow the commercializing of these innovative technology concepts as a step further in the implementation of its strategy generating revenue out of know how and technology and in addition to realize its goal to differentiate itself through design in the ICT market.
Over Yeahronimo Media Ventures Inc.
Yeahronimo Media Ventures (YMV) was founded July 2004 by SATXS Communications BV and Yeahronimo NV. YMV has its headquarters in Beverly Hills, California, and a Dutch office in Baarn. YMV has grown rapidly from a pioneer to a full service company of digital media and content distribution.
As a total supplier of legal music downloads, sport programs and live concerts, YMV allows the consumer to lean back and enjoy the best artists, soccer games, hockey and dance events like Sensations and DJ Tiësto in concert. YMV provides the full chain from content creation up to multi channel distribution via broadband, cable and satellite.
YMV already obtained the rights from Tulip Computers for music, games and in the near future the digital distribution for movies through the CommodoreWorld portal and the online sales of Commodore hardware.