Posted in: Comics, Current News | Tagged: Ad Populum, Alliance Entertainment, diamond, universal

Universal Distribution & Ad Populum To Buy Diamond Comics After All?

Universal Distribution and Ad Populum now favoured to buy Diamond Comic Distributors instead of Alliance Entertainment after all?

So it looks like Alliance Entertainment or AENT may not be buying Diamond Comic Distributors after all. Universal Distribution, along with Ad Populum, may also be back in the game.

Earlier this year, Diamond Comic Distributors, a stalwart distributor of comics to the direct market, declared Chapter 11 bankruptcy after a tumultuous half-decade. On the 24th of March, the bankruptcy auction process initially selected Alliance Entertainment as the successful bidder of the Diamond-associated companies Diamond Comic Distributors, Alliance Game Distributors, Collectible Grading Authority, and Diamond Select Toys & Collectibles, but excluding Diamond UK.

But legal paperwork filed yesterday states that after consultation, the debtors believe that the consortium reported by Bleeding Cool as the auction backup bidders, Canadian distributors Universal Distribution and Ad Populum should be the successful bidders for Diamond Comic Distributors. And a hearing is taking place tomorrow at 10 am before Judge David E. Rice at the United States Bankruptcy Court for the District of Maryland. Paperwork has been amended to confirm that the two companies are not associated in any way other than in the bid. So, while everyone has been preparing for Alliance Entertainment to take over Diamond, it looks like it could be Universal and Ad Populum to divide the spoils.

The price they initially bid would be $69,130,000, split between the two, Universal to pay $49,634,950 for Alliance Games and Diamond UK, and Ad Populum to pay $19,495,050 for the rest.

Universal Distribution is a Canadian comic book distributor that handles all the main comic book publishers and competes with all the major comic distributors in the country's territory. It has also made moves in the past to operate in the USA.

Ad Populum owns action figure manufacturer NECA, Joseph Enterprises of Chia Pet and The Clapper, Rubies of Halloween costume fame, Enesco, Kidrobot, WizKids, ExKaliber, Graceland, Smiffys, and Radical Share. I understand that this joint bid was significantly higher than Alliance's Stalking Horse bid on its own.

Universal Distribution, the original Stalking Horse bidder, wanted Diamond UK as long as they also got Alliance Game Distribution. That original deal would have seen Universal buy Diamond UK for the value of their working capital accounts minus £200,000. What the deal, post-auction, would be, we don't know. But maybe, just maybe, we are going to find out on Monday.

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