SurfStitch sells Garage Entertainment to Madman

Company News

by David Chau

SurfStitch Group (ASX:SRF) has completed the sale of Garage Entertainment, one of its media businesses, to the Madman Media Group.

Madman will pay a nominal cash amount for Garage Entertainment – but the amount has not been disclosed.

The parties have agreed to, following completion, negotiate a strategic partnership whereby Madman will supply marketing, content development and advertising services to SurfStitch.

SurfStitch posted a $12.9 million impairment for Garage Entertainment in its FY16 full year results, representing full write-down of goodwill.

The company says the sale of Garage won’t have a material impact on FY17 underlying EBITDA.

This morning, SurfStitch shares are trading flat at 13.5 cents.

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