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SBJ/February 28 - March 5, 2000/No Topic Name
Deal means $300M for head Redskin
Published February 28, 2000
Washington Redskins owner Daniel Snyder will reap about $300 million in stock from the sale of his marketing company to Havas Advertising.
Last week, Snyder announced that he will sell Bethesda, Md.-based Snyder Communications Inc. to France-based Havas Advertising for $2.1 billion in a stock deal. Snyder controls 10 million shares in Snyder Communications. The deal values Snyder stock at $29.50 a share.
Snyder, who bought the Redskins last spring for $800 million and revived the undermarketed franchise with an aggressive hands-on management style, is expected to start a new company once the sale of Snyder Communications is completed.
"He has more time for the Redskins, but he has other business interests as well," said Snyder spokesman Karl Swanson. "Will he become more hands-on with the Redskins? No. Things will stay the way they have been."
Snyder started his marketing company in 1988 and took the company public in 1996. The company has three major components: Arnold Communications, an advertising agency; Bounty SCA Worldwide, a marketing services company; and Brann Worldwide, a direct marketing company.
Snyder has invested in Circle.com, an Internet company. Snyder is also co-chairman of a health marketing company called Ventiv Health Inc. In the first nine months of 1999, Snyder Communications earned $19 million on $468 million in revenue.
It is not expected that Snyder will immediately sell any of his Havas holdings, nor does it appear that Snyder will have to use proceeds of his company's sale to fund the debt service on the about $350 million he borrowed to buy the Redskins.
"He will be the single largest shareholder of Havas," Swanson said.
Since Snyder bought the Redskins, he has boosted annual stadium revenue by $20 million, to $72 million, not including a 27-year, $215 million naming-rights deal with Federal Express Corp.