Weinstein Co. Sells Controlling Stake In Social Network For The Rich ASmallWorld.net

Weinstein Brothers

Updated: The struggling Weinstein Co. has sold most of its stake in exclusive social network ASmallWorld to Swiss heir and entrepreneur Patrick Liotard-Vogt, we have confirmed. The LA Times reported the news this afternoon, citing sources; the German-language newspaper Frankfurter Allgemeine had reported it earlier (Subscription required). The Weinstein Co. initially invested in ASmallWorld three-and-a-half years ago as part of a “multi-million dollar” round. A planned European IPO was delayed in May 2008 due to market turbulence. At the time, ASmallWorld said that it had been approached by large media companies including Conde Nast and Time Warner (NYSE: TWX) but did not want to sell. The site has been hard hit since then by the recession, and the Frankfurter Allgemeine says the startup laid off 40 percent of its staff last Fall.

Liotard-Vogt will become chairman of the company. He wants to introduce premium services to the site and reportedly hopes to boost its revenue by a “double-digit” percentage this year. He’s also the CEO of The World’s Finest Clubs, a company which provides members access to exclusive clubs, hotels and restaurants around the world — in exchange for annual fees of as much as 2500 euros. There could be some obvious synergies between ASmallWorld and that operation.

As for the Weinstein Co., which is led by brothers Bob and Harvey Weinstein, they say in a statement that they received “a number of offers” for their stake, including some which were higher than Liotard-Vogt’s, but favored his bid because of his plans for the social network. Financial details were not released.

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