BERLIN — Germany’s Neuer Markt continued to feel reverberations from Internationalmedia’s stock crash earlier this week as fellow entertainment company Splendid Medien was forced to write off 16.3 million euros ($14.2 million) from its Internationalmedia shares.
Internationalmedia startled investors Monday when it shelved its planned merger with Spyglass Entertainment and introduced new accounting procedures. The shock wave eventually hit Splendid, whose own stock price took a 23% tumble Wednesday and fell a further 6.5% on Thursday, closing at $1.89.
Splendid sold its 49% stake in Initial Entertainment Group to Internationalmedia last year and in return received shares in the company valued at $19.48 each. Internationalmedia’s plunge left the shares worth $6.16. As a result, Splendid’s operating profit of $1.3 million, announced in January, will be lower. Company said its liquid assets now amount to $6.77 million.