Deal on Spin Magazine Falls Through Due to Buyer Failing to Transfer Funds
In a baffling turn of events, the proposed sale of Spin magazine to Airtab, a Florida-based events platform, has expired without closure. The deal, which had been in the works for about eight months, was set to be announced in a 1,200-word embargoed deal announcement.
Next Management Partners, a Santa Monica-based venture capital firm, had agreed to sell Spin magazine to Airtab. The deal was with Dennis Cunningham, the owner of Airtab, and was intended to bolster editorial coverage with a more local focus and turbocharge the events business with high-profile live shows.
Airtab planned to increase the magazine's circulation to 150,000-200,000 copies, transition Spin from a quarterly to a monthly publication, and increase the full-time staff by 25 percent over the next year. However, according to Spin CEO Jimmy Hutcheson, the wire transfer to finalize the sale did not go through.
Hutcheson claims that Airtab showed up to the deal close without sending cash, aside from a legal deposit. This has left the management team at the publisher confounded, especially given the approval of all Next Management Partners' investors on the deal.
The situation is further complicated by the fact that no information has been found indicating that any company finalized a contractual agreement with Next Management Partners for the purchase of Spin Magazine in July 2022.
Spin magazine has been through three owners over the past decade. During its tenure under Next Management, the magazine has grown its revenue by 17x by looking for deals in licensing and branding opportunities. The company will now evaluate opportunities for potential sale if a qualified buyer comes along.
The deal's collapse has not deterred Airtab from its ambitious plans. The company is reportedly looking for other opportunities to expand its events business and bolster its editorial content.
Spin staffers were informed of the deal falling through on Tuesday. The news comes as a disappointment, but the team remains hopeful for a new opportunity that will secure the future of the iconic magazine.
