Rare Medium Corp. completed its
plan to
transform itself into a pure Internet company by selling its majority interest
in air conditioning business Fresh Air Solutions (FAS) to an FAS management
group.
The management group paid Rare Medium $1.5 million, including cash of $1.125
million and a note for $375,000, and relieved Rare Medium of all the
liabilities of FAS of approximately $7.0 million.
New York City-based Rare Medium retained a 40% passive interest in FAS, but
Rare Medium will have no future operational or funding responsibilities for
FAS, which reported losses in
excess of $3.5 million during the first six months of 1998.
“The true value of this transaction significantly exceeds the tangible
proceeds,” said Glenn S. Meyers, president and CEO. “This
sale enables us to devote 100% of Rare Medium’s energies to solidify its
position as a leading Internet service provider. Rare Medium and FAS can now
focus completely on their own strengths, increasing the probability of each
separate business being successful.”
Rare Medium, Inc. is an Internet services firm that provides business strategy
consulting, marketing, creative design, and development, needs analysis,
architecture planning, Internet, intranet, and extranet solutions, hosting and
maintenance.