World Television Group Plc
('World Television' or 'the Company')
World Television agrees to sell Foroso
World Television, the international televisual communications company, today
announces that it has agreed to dispose of the Company's webconferencing
subsidiary Foroso Communications GmbH ('Foroso').
Following a detailed strategic review of the business, the Directors of World
Television have concluded that Foroso and its web conferencing products are not
a core part of the group's strategy going forwards, due in the main to the
increasing commoditisation of these services, and are therefore pleased to reach
an agreement with members of the existing management team of Foroso. Foroso's
Meeting Centre and Training Centre will continue to operate as normal and
without interruption.
Four of the original founders of Foroso (Peter Pock, Elmar Merget, Kristof
Nast-Kolb and Ingrid Buchenberger) will take ownership of the company from 1
January 2006. World Television will receive a 20% share of revenues in 2006 and
2007. World Television will also receive all of the proceeds of any sale of the
business before 30 June 2006, up to a maximum of £680,000, and 20% of any
subsequent sale until 31 December 2015.
Foroso is currently unprofitable and has struggled to reach profitability since
it was acquired by the Company in May 2004, due to falling margins and intense
competition. Foroso revenues in 2005 are expected to be under £150,000.
Steve Garvey, CEO of World Television, said: 'Working with the management of
Foroso, we have reviewed our options regarding the business and it is clear that
Foroso no longer fits within the group. Since the enlarged World Television was
created in August 2004, the Company's range of services has increased
significantly. Foroso sells its services to a different kind of customer, its
products are not televisual and there are few synergies between it and rest of
the Company. I believe we will generate faster growth by concentrating on our
core business of televisual communications services while ensuring our
shareholders get value from Foroso in future. I wish the new owners every
success.'
ENDS
Enquiries:
World Television Group plc Tel. +44 (0)20 7388 8555
Steve Garvey, Chief Executive
Buchanan Communications Tel. +44 (0)20 7466 5000
Charles Ryland/Jeremy Garcia
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