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.