(Online Dating Industry Journal) Think Partnership Inc., formerly known as CGI Holding Corporation today announced that it has signed a letter of intent to sell its online dating and online education businesses to Mountains West Exploration Inc.
If the transaction is completed, Think Partnership would sell its wholly-owned online dating subsidiary Cherish, Inc., including Cherish's direct and indirect subsidiaries Personals Plus, Inc., and Vintacom Media Group, Inc., and the Company's wholly-owned online education subsidiary Real Estate School Online Inc., to Mountains West Exploration Inc. for an aggregate of $21,000,000 in cash and unregistered common stock of Mountains West valued at $9,000,000.
The sites being sold were acquired by Think Partnership during the past two years, for an aggregate of $10,712,500 in cash, $11,212,500 in common stock of Think Partnership, and $1,200,000 in notes, or a total of $23,125,000.
"We are under no pressure to divest ourselves of these businesses as they are profitable,” stated Think Partnership CEO Gerard M. Jacobs. “However, after due consideration, we believe that this transaction, if completed, would clarify our business model, and better focus our management time and capital on integration and growth opportunities for our online marketing and advertising business segment while allowing a significant pure play opportunity for these important but now, non-core assets."
Kim's Comments:
If this sale goes through, it looks like Think will be narrowing its focus as it has been pretty unfocused up to now. It seems they are trying to avoid spreading themselves too thin and instead plan to look toward building their online marketing and advertising business.
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