ProfMedia Shopping Rambler Media for $200m

Just months after consolidating a 100% stake in Rambler Media, Russian media and entertainment holding company ProfMedia is looking to sell the business it first acquired in late 2006. ProfMedia’s initial investment gained a 55% stake in Rambler for an estimated USD 250 million; the asking price has been set at around USD 200 million.

Late last year the company announced plans to de-list Rambler from London’s Alternative Investment Market and embark on a USD 1 billion IPO.

Rambler’s poor performance in 2009 and Q1 2010 may be the driving force behind the sale. Company revenues for the first half of 2009 were down 40% from the same period in 2008, at USD 30.8 million. Search market share dropped from 10% in Q1 2009 to 3% in Q1 2010, while just slightly more than 14 million new users visited the company’s websites in December 2009.

Several potential buyers have been rumored, including Sergey Kalugin’s WebMediaGroup. In addition, Digital Sky Technologies offered to purchase Rambler’s 50.1% share of internet advertising company Begun. The offer was refused due to ProfMedia’s desire to sell all Rambler assets as a single package.

ProfMedia (www.profmedia.ru)
ProfMedia is Russia’s largest media holding company, with operations across a wide spectrum of entertainment and family-focused media platforms. Its TV holdings operate Russia’s national TV network, TV3, as well Russian versions of the popular music channels MTV and VH1. Radio holdings include flagship station Avtoradio and several top-tier radio stations in Moscow and St. Petersburg.