Time Out Group (LSE:TMO) has signed a long-term franchise agreement with Vinyl Group (ASX: VNL), a leading Australian media business, to transition Time Out Australia's media operations to Vinyl.
The five-year franchise, which includes automatic annual renewals and customary termination provisions, will deliver ongoing royalty payments plus annual minimum guaranteed payments while Time Out will continue to provide brand support, editorial standards and strategic guidance and the deal underpins Time Out Group, the global media and hospitality business's strategy of partnering with established local operators to generate recurring, capital-light revenue streams.
"Australia is an important territory for Time Out, and we're proud of the business and audience we have built over many years," Rob Biagioni, CEO of Time Out Media, said.
Completion of the transaction is expected to occur on 24 June, subject only to the expiry of a customary cooling-off period.
