Posted in: Comics, Current News | Tagged: Ad Populum, bankruptcy, diamond

Ad Populum Paid Quite A Lot More For Diamond Comics Than We Thought

Ad Populum paid quite a lot more for Diamond Comic Distributors than we previously thought...

Last week, Bleeding Cool reported court filings in the Chapter 11 bankruptcy proceeding of Diamond Comic Distributors that detailed the purchase by the now-winning bidders, Universal Distribution and Ad Populum/Sparkle Pop. That Universal will pay almost $50 million plus or minus a few other factors, and would own Diamond's Alliance Game Distributors, with a separate deal for Diamond UK. And Ad Populum would pay a smaller $7.5 million for everything else, Diamond Comics, Diamond Books, Diamond Select, CGA, and more.

We noticed that Ad Populum's total was $12 million less than the amount they bid at the auction. That was, of course, when they were in a battle with AENT, which has now withdrawn its bid. But Ad Populum's amount dropped when Universal Distribution,

But Bleeding Cool now understands that Ad Populum will be paying another $10 million, bringing the total to around $17.5 million, taking in a number of other payments and obligations to facilitate the purchase, far closer to the original $19.5 million that they bid at the auction.

You can use these Diamond and bankruptcy tags to keep up with the latest on Bleeding Cool. And a quick reminder of how we got here…

• On the announcement of Chapter 11 on the 14th of January, Diamond started a 13-week bankruptcy process run by financial firm Raymond James, got finance to operate, and announced an auction for its assets.
• Those assets included Diamond Comic Distribution, Alliance Gaming Distribution, Diamond Select Toys, CGA and Diamond UK
• Universal Distribution was named the Stalking Horse bidder for Alliance Games and Diamond UK, which required a purchase commitment of thirty-nine million dollars but with certain discounts and privileges for taking that position.
• The auction took place, and Alliance Entertainment, or AENT, was named the top bidder for the assets of $72,245,000, though not for Diamond UK. This was widely announced, including by Diamond themselves.
• Then we learned that a joint bid by Universal Distribution and Ad Populum came second and was named the back-up bid, with a bid of $69,130,000. With Universal getting Alliance and Diamond UK, and Ad Populum getting Diamond Comics, Diamond Select Toys and everything else. Basic Fun were third with fifty million.
• A court hearing with the Honorable Judge Rice in Courtroom 9-D at the United States Bankruptcy Court for the District of Maryland at 10 am was intended to ensure the legality of the bid and the process.
• But instead over the weekend, the debtors declared that they had chosen the back-up bid from Universal and Ad Populum instead of AENT, despite AENT having bid more. No reason was given.
• AENT filed a lawsuit regarding this decision.
• It took the bankruptcy court to reverse that decision and state that AENT with the higher bid had won, though they would have to withdraw their lawsuit.,
• AENT has terminated their winning bid and purchase.
• Universal Distribution and Ad Populum were back in the running
• Diamond declared "business as usual" but the courts threatened Chapter 7 over late paperwork.
• AENT sued Diamond, claiming fraud
• Diamond says it's all in hand and went back to court, wanting to be owned by Universal and Ad Populum.
• Sale of Diamond to Universal and Ad Populum approved by courts.
• Podcast blamed/credited with current state of affairs
• Diamond tells Skyrush to stop claiming they won CGA.
• And here we are now…

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