Universal Distribution and Sparkle Pop/Ad Populum Buy Diamond Comic Distributors at a Discount

The lively auction for the beleaguered company has finally come to a close.

Talk about a wild ride. The sale of Diamond Comic Distributors (which we reported had filed for bankruptcy back in January) has finally come to a close, but perhaps not the one some were expecting. Initially, Alliance Entertainment was set to purchase Diamond, but after seeing the state of the latter's financials, the former opted for a second look at the deal. Flash forward to now and a new set of buyers has entered the scene: Universal Distribution and Sparkle Pop, which is a holding company for Ad Populum (which is the parent company of NECA and WizKids). Despite bidding more, Alliance has been rejected in favor of Universal and Sparkle/Ad.

The sale still needs to be formally finalized, but here's what is known about it so far. Universal paid $49 million for its chunk of Diamond, while Sparkle/Ad paid roughly $19 million. All together that's a savings of nearly $12 to $15 million compared to the maximum bid offered by Alliance (which is estimated to be somewhere around $72 to $80 million). Alliance is apparently miffed by the snub and will be seeking compensation for not winning Diamond despite the higher bid. That's drama for another day, however.

The purchase has some contingencies baked in, including exclusions for certain people associated with Diamond owner Steve Geppi. Diamond itself is being split up between Universal and Sparkle/Ad as follows:

• Universal: Alliance Game Distributors

• Sparkle/Ad: Diamond Comic Distributors, Diamond Book Distributors, Diamond Select Toys & Collectibles, Collectible Grading Authority, and other related assets

Universal is looking to bolster its footing in the US with its purchase of Alliance. Meanwhile, Sparkle/Ad's plans for Diamond aren't totally known, but here's what Ad Populum Managing Director Joel Weinshanker had to say in a statement following the purchase:

“Ever since I was young, I’ll never forget walking through the front door of my neighborhood shop and spotting those iconic Diamond Comic boxes, each one opening to reveal my dreams and ambitions. We’re incredibly excited to build on Diamond’s remarkable legacy by bringing Ad Populum’s best-in-class sales, marketing, and distribution to the next chapter.”

As for Diamond UK, it's unclear what the long-term future for that branch of the Diamond empire will be. We'll continue to update as we learn more.

Source: ICv2