Polnet Deal Summary07/08/2015
On June 16, 2015 part of Stahl Cowen’s corporate group, consisting of Lauane Addis, Tim Fitzgerald and Rebecca Vicario, closed the sale of approximately 25% of the equity interest in a limited liability company for $10,000,000 on behalf of a mass media client. The transaction took two years, start to finish, and involved the transfer of a television station to a newly-formed limited liability company, the creation of the LLC as a tax partnership, and the subsequent sale of units in the limited liability company in order to sell an equity interest to an investor. The negotiations for the transaction originated in early 2013 and almost reached a conclusion in August 2014 when the parties could not reach an agreement on tax and management structure and the overall economics of the transaction. Stahl Cowen litigator Jon D. Cohen filed a declaratory action in Federal Court on behalf of the client in order to protect its interest in the television station license. In settlement of the litigation, the parties renegotiated the original agreement, reaching a settlement that that will likely exceed a value of $20,000,000 in revenue and containing terms that are overall more favorable to Stahl Cowen’s client.