Prometheus Global Media has spun off trade publication Backstage into a new venture that will be headed by media executive and investor John Amato.
Amato, co-founder of taxi advertising firm Show Time, will be chairman and CEO of the venture.
One source close to an investor said he believed it was around a $3 million deal, but neither Finkelstein nor Amato would confirm the price tag.
The spin-off is described as a joint venture with Amato’s firm, AIDEM Capital, and Prometheus as “substantial owners.”
But since Amato is chairman and CEO of the venture, it suggests he has purchased the majority stake.
One source with knowledge of the talks said he believed it was a $3 million deal, with Amato and one of the original Prometheus backers, Guggenheim Partners, putting up the bulk of the investment “going forward.”
Prometheus may be able to recoup much of its share by simply housing the Backstage folks in the Prometheus offices in New York City, and Los Angeles, where it will continue to be based.
Todd Boehly, a managing partner at Guggenheim, did not return a call seeking comment.
Reports have circulated for months that Boehly and Jimmy Finkelstein were not happy with the direction of Prometheus, which purchased Adweek, Billboard and The Hollywood Reporter from Nielsen for about $70 million in December 2009.
CEO Richard Beckman was recruited from Condé Nast and Fairchild in early 2010, but was bumped aside several months ago and given a new role searching for investors for a branded-entertainment initiative. Beckman kept the CEO title, but Finkelstein took over most of his day-to-day duties. As one source has said, “[Beckman] over-promised and under-delivered.”
Yesterday, Beckman was nowhere to be found in unveiling the strategic divestment.
Finkelstein shot down speculation that Prometheus is pressed for cash and that was the reason for the deal.
“It’s a strategic alliance between his group and ours,” insisted Finkelstein. “It is not a sale. We do not want to sell any of our major brands.”
Amato said he plans to expand the weekly magazine aimed at actors looking to line up their next gig into a larger online and database-driven operation.
Boehly, the main money man who had joined Finkelstein and several others in making the initial purchase of the trade group from Nielsen, did not return calls yesterday for comment on the latest turn in the company saga. kkelly@nypost.com