Tribune Co. said Thursday it is selling Compton’s NewMedia to SoftKey International Inc. in an all-stock transaction valued at $106.5 million. In addition, Tribune said it will invest $150 million in SoftKey if that Cambridge, Mass.-based software maker and distributor succeeds in its hostile bid for The Learning Co.
In the Compton’s transaction, SoftKey also will assume up to $17 million of Compton’s debt.
SoftKey is locked in a takeover battle for The Learning Co., a Fremont, Calif.-based maker of educational software, with Broderbund Software Inc. Broderbund and The Learning Co. agreed in July to a friendly all-stock takeover. That deal, valued at $550 million, is due to be approved Dec. 11.
On. Oct. 30, SoftKey offered a mix of cash and stock valued at $580 million in a tender due to expire Dec. 14. SoftKey said Thursday that, given the Tribune involvement, it may change the mix of cash and stock in its bid for The Learning Co.
SoftKey has announced its intent to buy Minnesota Educational Computing Corp., an education software manufacturer . The combination of SoftKey, MECC, The Learning Co. and Compton’s would result in one of the largest firms in the interactive CD-ROM industry, Tribune said.
