Prometheus Global Media has spun off Backstage, the weekly trade for gig-seeking actors, into a new venture that will be controlled by new Chairman and CEO John Amato, a co-founder and former owner of taxi media firm Show Time.
Prometheus Chairman Jimmy Finkelstein described the new entity, Backstage LLC, as a joint venture with Amato’s firm, Aidem Capital, and Prometheus as a “substantial” partner.
Finkelstein dismissed the idea that Prometheus, which also owns Billboard, The Hollywood Reporter and Adweek, was disguising a sale in the form of a spinoff.
“It’s a strategic alliance between his group and ours. It’s not a sale,” insisted Finkelstein. “We do not want to sell any of our major brands.”
Several industry sources believe Prometheus is keeping only a small stake and that its role will be limited, while Amato as majority investor will be the driving force.
One source said Amato told potential partners that only Todd Boehly of Guggenheim, one of the original partners with Finkelstein in Prometheus, was involved.
“It sounds like a sale,” said the executive who had talked with Amato.
Terms were not disclosed. The sale price is estimated to be in the $3 million to $5 million range, according to once source.
Meanwhile, controversy continues to swirl around Finkelstein’s hunt for a new editor of Adweek. He is said to have been searching for several months after clashing with incumbent Michael Wolff over the new changes and direction of the trade weekly.
Reached yesterday, Finkelstein gave a rather tepid endorsement of Wolff.
“He is here. He is on the masthead. Both Michael and I have strong personalities,” he said. “We both want to get it right.”