Crispin Porter & Bogusky and Kirshenbaum Bond Owed $47 Million by MDC Partners
It’s not feeling much like a recession for the founders of Crispin Porter & Bogusky and Kirshenbaum Bond & Partners: their corporate parent, MDC Partners, owes them an estimated $47 million in earnout payments and stock between now and the end of 2010.
The news came in the slideshow that accompanied MDC’s Q1 2009 earnings call. Slide 12 shows “Estimated Earnout Impact” but doesn’t mention the agencies (click on image to enlarge).
In MDC CFO David Doft’s commentary, he said:
Slide 12 summarizes estimated outstanding earnout obligations. The significant commitments coming due in 2010 relate to estimated earnout payments due to Crispin, Porter & Bogusky and Kirshenbaum Bond & Partners in the early part of the year.
These estimates could change depending on the performance of these entities in 2009.
He also noted that just over $2 million in earnout payments were paid to MDC agencies during Q1.
So if Richard Kirshenbaum, Jon Bond and Alex Bogusky have been walking around the office with big smiles on their faces, this would be why.
- See BNET’s previous coverage of Freeman:
- MDC Partners Q1: Revenue Down 10%; Profit Comes Following Mass Layoffs
- Cliff Freeman CEO Exits After Fla. Lottery Pitch Loss; Twitter Trail Tells Strange Tale
- MDC Partners Q4: Cliff Freeman Mystery Deepens
- MDC Cuts Cliff Freeman Free; Venerable Agency’s Options Get Narrower
- Cliff Freeman Loses Quiznos; Agency Survival in Question
- Cliff Freeman in Freefall? Client Gains Don’t Seem Big Enough to Cover Lost Revenue
- Cliff Freeman Names New CEO; Turmoil as Usual
Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an email.
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