Scoot.com Sells Loot

Online directory firm Scoot.com has agreed to sell Loot, its classified advertising business, to the owners of the Daily Mail newspaper for £45m.

The deal comes at a vital time for the company, which has said it only has “sufficient working capital” to trade until the beginning of October this year.

As well as buying Scoot’s businesses in Britain and Ireland, DMGT, publisher of the Daily Mail and the Evening Standard will also provide the company with a £10.5m ‘bridging loan’ to help it repay bank loans and generate working capital.

Scoot suffered operating losses of £2.8m in the 17 month period ending 31 December 2000, £3.3m of which was incurred by the Loot business.

According to a statement released today:”The company has had to deal with a difficult and uncertain period which has led to adverse consequences for staff and customers. Today’s developments will allow the Directors of Scoot to consider all opportunities for the remaining Scoot business on an improved financial footing.”

Scoot said it was talking to DMGT about “an ongoing commercial relationship between Scoot and the Loot business”.

Scoot.com Plc: 020 7466 5000 www.scoot.co.uk

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