FNET Future

RNS Number:3503N
Future Network PLC
19 November 2001



 19 November 2001

                              FUTURE NETWORK PLC

                   PROPOSED DISPOSAL OF TED CONFERENCES LLC

The Future Network plc ("Future") (LSE: FNET), the international specialist
magazine publisher, today announces that further to its announcement relating
to TED Conferences LLC ("TED") made on November 7, 2001, its subsidiary
Imagine Media Inc. ("Imagine")  has entered into a definitive agreement to
sell TED to The Sapling Foundation for $6 million (#4.2 million) in cash.

Included in the sale to Sapling is Imagine's minority interest in Balthaser
Online, Inc. ("Balthaser") a California company engaged in the design of web
sites. The book value of Balthaser in Future's accounts was written down to
zero as at 31 December, 2000.

The economic benefit to Future of the sale is estimated at $10.4 million (#7.3
million), after taking into account the tax benefit associated with the
capital losses incurred on the sale of TED and Balthaser, and before legal
fees associated with the sale. The full tax benefit is likely to be realised
once Imagine finalises its 2001 return.

All of the net proceeds from the transaction will be used to pay down Group
debt.

TED was acquired at a time when Future published the New Economy magazine,
Business 2.0. Since the sale of that title to Time Warner in July, TED has
become non-core.

Sapling is a non-profit public benefit corporation established in 1995 by
Chris Anderson (former Chairman of Future). Chris Anderson is currently
Sapling's sole director. Neither Chris Anderson nor any member of his family
is a beneficiary of Sapling whose purpose is to provide financial assistance
to non-profit organisations involved in the furtherance of charity, science or
education.

As indicated in Future's announcement of 7 November disclosing Sapling's
interest in TED, Future announces today the resignation of Chris Anderson from
the board of Future.

Roger Parry, Chairman of Future, commented  "TED is a specialised business and
a non-core asset for Future. It is the right move for Future's shareholders
and for TED to sell it to an enthusiastic new owner.  Future is the creation
of Chris Anderson; the Board is very sorry to see him leave, and wishes him
well in his new business enterprises"

Commenting on the transaction, Chris Anderson said, " I have loved every TED
conference I've ever attended, and I truly relish the prospect of taking TED
forward on behalf of Sapling. It's already an event that 'makes a difference'
for many people, and I believe the TED community will value the fact that
future proceeds from the conference will fund some of the wonderful projects
supported by the foundation. At the same time, I am very sad to be leaving
Future - it's been a huge part of my life, and despite the tough times of the
past couple years, I am incredibly proud of the Future story: its people, its
magazines and its culture. Happily, the company is in very good hands. I'll
still be cheering from the sidelines."

History of TED


TED is the creation of Richard Saul Wurman, and is the operator of the TED
Conferences, which focuses on the way that Technology, Entertainment and
Design are reshaping business and society by creating new ways of
communication and learning. The most recent TED Conference was held in
February 2001 in Monterey, California. The next conference (TED 12), to be
held in February 2002 in Monterey California, will proceed as planned. Chris
Anderson will be working closely with Richard Saul Wurman on the planning and
design for the 2003 conference.

On 21 July 2000 Future acquired a 49 per cent. stake in TED through its
wholly-owned subsidiary Imagine Media Inc from TED Conferences Inc, TED's
parent company, for a consideration then valued at $8 million (comprised of $6
million in cash and 158,227 ordinary shares in Future). At that time Imagine
Media Inc and TED Conferences Inc entered into a put and call option relating
to the remaining 51 per cent. of TED. On 23 July 2001 Future was required,
under these arrangements, to acquire the remaining 51 per cent. of TED for a
cash consideration of $6 million. The transaction was completed on 24 August
2001.

Richard Saul Wurman commented, "TED 12 will be the best TED conference I have
ever held. I am delighted to be starting work with someone who has a passion
for this unique event, and a passion to create something in his own style in
2003. The passing of the baton to Chris Anderson, along with the keys to
kingdom, will be done with enthusiasm."


 For further information:

The Future Network plc

Greg Ingham, Chief Executive
             01225 442244


The Sapling Foundation

Jaime Dioli
001 650 851 9092


Hogarth Partnership

James Longfield/Georgina Briscoe
020 7357 9477

Future (LSE:FNET)
Historical Stock Chart
From Jun 2024 to Jul 2024

Future (LSE:FNET)
Historical Stock Chart
From Jul 2023 to Jul 2024