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— Deals —
As Crain's New York tells us, 525 magazines died in 2008. What's in store for 2009? Bankruptcies and auctions amid a changing industry. Here's the latest: Weekly Standard June 10, 2009: News Corp.'s evolving ideology on print: The Weekly Standard may be sold to billionaire businessman Philip Anschutz, triggering speculation News Corp. may sell more of its print publications as advertising remains sluggish. - Gerald Magpily June 12, a media banker weighed in on why Murdoch's really selling the magazine. Fleurus Presse, Junior Hebdo June 8, 2009: OpenGate to buy French children's magazines: The private equity firm will obtain Fleurus Presse and Junior Hebdo from Groupe Le Monde. - Barbara Rudolph
Bonnier, Hachette Filipacchi
June 2, 2009: Bonnier acquires five magazines from Hachette Filipacchi: The buyer purchases special interest titles American Photo, Boating, Flying, Popular Photography and Sound & Vision to close a six-month auction. - Thomas Zadvydas Gerald Magpily then wondered whether Time Warner would follow Hachette Filipacchi lead? Back in May, Bonnier, HFM U.S. came to terms on a deal. In March, Hachette put the titles on the block, but it looked like the all-or-nothing sale could lead nowhere. CanWest, The New Republic March 9, 2009: Peretz regains control of The New Republic: CanWest sells the magazine back to its longtime editor. - Chris Nolter Feb. 6, 2009: CanWest Global weighs options: Winnipeg, Manitoba, media company CanWest Global Communications Corp. announced Feb. 2 that it will explore strategic alternatives and seek to divest noncore assets. CanWest has sought to divest assets since a pair of big-ticket acquisitions in the first quarter of 2007. That January, CanWest teamed up with Goldman, Sachs & Co.'s private equity group in a $2 billion acquisition of Alliance Atlantis Communications Inc. In March it agreed to acquire U.S. political magazine The New Republic. - Demitri Diakantonis Playboy June 2, 2009: New Playboy CEO talks strategy, not sale: Rumors of a $300 million sale of Playboy Enterprises Inc. took a backseat to the election of Scott Flanders as CEO of the ailing adult entertainment company. The appointment marks the end of an almost six-month search to replace former CEO Christie Hefner. - Baz Hiralal This, after May 28, 2009: Virgin says no to Playboy: Contradicting media reports, Richard Branson's Virgin Group of companies is not bidding for Playboy Enterprises, which considered an outright sale -- with a possible price tag of $300 million -- in February. Virgin quelled rumors of a deal in an e-mailed statement to Reuters. - Baz Hiralal And May 22, 2009: Report: Playboy uncovers $300M price tag Dec. 8, 2008: A new era at Playboy as Heffner exits: On a day filled with troubling news for print media comes word that Christie Hefner is stepping down as chief executive of Playboy after 20 years at the helm. Longtime company director Jerome Kern will take over as interim CEO on Jan. 31, and Hefner will remain on the board until a permanent replacement is found. - Suzanne Stevens Adweek, Brandweek, Mediaweek March 30, 2009: Nielsen may reshuffle Adweek: Troubled media company Nielsen may fold Brandweek and Mediaweek into the better known Adweek trade publication. - Gerald Magpily April 17, 2008: Nielsen buys IAG Research: Nielsen Co. said April 7 it has agreed to buy IAG Research Inc., which measures advertising effectiveness in television, for $225 million cash. Nielsen, based in New York and in Haarlem, the Netherlands, manages the Nielsen TV-rating business and ACNielsen consumer-tracking business and publishes the trade magazines Adweek, Billboard and Hollywood Reporter. - Luisa Beltran National Enquirer March 26, 2009: TMZ making National Enquirer passe?: The growth of celebrity gossip blogs may limit the recovery for entertainment magazines, according to an analyst report. - Chris Nolter BANKRUPCIES AND SHUTTERINGS ABOUND May 4, 2009: Columbian Publishing to request use of cash: The bankruptcy of Columbian Publishing Co. is the 10th involving a newspaper or magazine publishing company this year, according The Deal Pipeline. - Kevin Fung April 30, 2009: Sport magazine, a men's free weekly magazine, suspended publication after its French parent company, Sport Media & Strategy, went into administration. April 28, 2009: Source Interlink rides bankruptcy bandwagon: Source Interlink filed for a lender-approved prepackaged Chapter 11 bankruptcy. The Deal Pipeline database indicates it's the ninth bankruptcy in the media/newspaper sector so far this year. - Gerald Magpily April 27, 2009: Portfolio as a bubble phenomenon: Conde Nast officially pulled the plug on Portfolio, a little more than two years after its much-hyped launch. - Yvette Kantrow March 3, 2009: Could Penthouse be closing its doors?: Gawker.com reports that chief operating officer Anthony Previte of Penthouse parent company FriendFinder wants to shut down the publication. - Gerald Magpily Feb. 26, 2009: Doubledown Media files for Ch. 7: The publisher of Dealmaker, Trader Monthly and Players Club ceased operations weeks ago. - Chris Nolter See: Feb. 3: Doubledown Media goes bust. Ziff Davis July 9, 2008: Ziff Davis exits bankruptcy: Ziff Davis Media Inc. has emerged from bankruptcy protection. The New York publisher exited Chapter 11 on July 1, CEO Jason Young said. Ziff, a publisher of technology and gaming magazines including PC Magazine and Electronic Gaming Monthly, sought court protection because of too much debt, a slump in tech-related advertising and an overall drop in revenue. - John Blakeley AS DO AUCTIONS AND OPPORTUNITY May 4, 2009: Relix Media Group LLC announced it has acquired New York-based rock magazine Relix, Relix.com, and Jambands.com from previous owner Zenbu Media LLC. March 5, 2009: Circling: Don't call them vultures, But some media execs are waiting for companies to fall into their laps. - Richard Morgan Feb. 24, 2009: Video: Meredith Corp.'s Zieser on distressed media deals: In this edition of Inside The Deal, Meredith chief development officer John Zieser talks to The Deal's Suzanne Stevens about distress deals in the media industry. - Suzanne Stevens Feb. 20, 2009: One media maven on the upside of downside: Meredith Corp. wants Shape magazine. If only it were that simple to extract it from ailing parent AMI. - Suzanne Stevens Nov. 19, 2008: Inside The Deal: RBS' Jim Kuster on telecom, media and tech deals: Media's in 'workout mode' - Suzanne Stevens July 1, 2008: More media mergers, but at lower valuations: The "retooling" of the media and marketing industries drove mergers and acquisitions in the sectors during the first half of 2008, Jordan, Edmiston Group Inc. said in a report. The online, marketing and interactive buyouts counterbalanced declining transactions in magazines, educational and professional publishing, newspapers and other areas. - Chris Nolter May 7, 2008: Carlyle's Pearlstine sees a future for magazines, newspapers: Norman Pearlstine, a senior advisor at the Carlyle Group and former editor in chief of Time Inc., spoke at the 2008 Leadership in Media Forum on Wednesday morning about the future of newspapers and magazines. - George White Reed Business Information Feb. 20, 2009: Dead end: The sale of Reed Business Information seemed like a sure thing. That proved to be a mistake. - Richard Morgan Incisive Feb. 5, 2009: Apax mulls new equity for Incisive Media: London private equity group Apax Partners Worldwide LLP is considering an injection of new equity into its sprawling business-to-business publishing company Incisive Media plc following a breach of lending covenants in December. - Jonathan Braude Congressional Quarterly Jan. 29, 2009: Congressional Quarterly for sale: Washington icon Congressional Quarterly, which has covered politics and policy on Capitol Hill since 1945, could soon have a new owner. Times Publishing Co., which is owned by the nonprofit Poynter Institute, put CQ on the block Jan. 28 in an effort to better direct resources toward its Florida holdings, most notably, the ailing St. Petersburg Times. CQ also publishes Governing magazine, which covers state governments. - Donna Block Cygnus, Airport Business, Frozen Food Age Jan. 27, 2009: Creditors set to take over Cygnus: Creditors of Cygnus Business Media Inc. are expected to assume control of the business-to-business media company after a few more weeks of finalizing terms with current owner Abry Partners LLC. - Richard Morgan PlanetOut, The Advocate Jan. 9, 2009: PlanetOut exits auction block: PlanetOut Inc. has finally found a buyer after a yearlong auction process. The San Francisco media company, which targets the lesbian, gay, bisexual and transgendered community, announced Jan. 8 that it had agreed to merge with privately held Here! Networks LLC and Regent Entertainment Media, the publisher of magazines The Advocate, Out and HIVPlus. - Thomas Zadvydas Maxim Meanwhile, Jan. 9, 2009, it looked like Maxim could prevent Steve Rattner from becoming car czar: Any college student can tell you that loud music, pretty girls and cars all go together, but it could be the combination of the three that prevents private equity dealmaker Steven Rattner from becoming Barack Obama's first car czar. - George White TONY + New York Magazine? Dec. 4, 2008: TimeOut New York up for grabs: TimeOut New York has leaped from the newsstand to the auction block.The weekly urban arts and culture magazine is up for sale with a cover price of $40 million after investors pushed for a sale to profit from their 13-year investment, according to the Times of London. The source also said a rumor is circulating that private equity firm Wasserstein & Co. might bid because TimeOut New York would complement its 2004 purchase of New York Magazine. Wasserstein sold American Lawyer Media for about $630 million in cash to Incisive Media Ltd. in July 2007. (Wasserstein & Co. is the parent of the fund that owns the Deal LLC.) Also up for grabs is TimeOut New York's share of its Chicago title, effectively giving any buyer control over the brand's U.S. properties. - Thomas Zadvydas TV Guide TimeOut's investors will have better luck selling their title than Macrovision Solutions Corp. did when it sold TV Guide Oct. 13, 2008, after a five-month auction. The digital distribution company sold that magazine to private equity firm OpenGate Capital for $1 and loaned the firm $9.5 million to help the magazine turn a profit. - Thomas Zadvydas May 8, 2008: TV Guide's back on the block: That couch potato's Bible, TV Guide, is back on the block just days after Macrovision said it completed the $2.8 billion takeover of Gemstar-TV Guide International Inc., the magazine's owner. - Thomas Zadvydas AMI Nov. 7, 2008: AMI plans massive debt restructuring: American Media Inc.'s decision on Nov. 10 about whether to default on an interest payment will depend on the receptivity of creditors to a sweeping restructuring that could leave them with 95% of the company's equity. - Richard Morgan Oct. 13, 2008: Weekly World News is sold: As American Media negotiates with creditors for a recapitalization, the publisher announced Oct. 11 that it has sold the Weekly World News to Bat Boy LLC. The Weekly World News follows UFOs, Bigfoot sightings, government cover-ups, bat-human hybrids and other alleged happenings. Bat Boy named Neil McGinness, a former executive with New York media companies IMG Worldwide Inc. and Broadway Video Inc., as chief executive. American Media is based in Boca Raton, Fla., and owns the Star, National Enquirer and Men's Fitness magazines. - Chris Nolter Time Inc. Oct. 31, 2008: Fonts of wisdom: Print may be under siege, but at least there's no shortage of voices about how to cope -- or not -- with a challenge characterized as "unlike any we've seen before." Last week alone, we heard three: the institutional, the sensible and the comical. The institutional voice comes from Time Inc. Or, specifically, from CEO Ann Moore, as expressed in a memo about layoffs that doesn't even mention layoffs. That's institutional speak for you. - Richard Morgan June 9, 2008: Bewkes lays out Time Warner map: Bewkes' apparent willingness to hold off on selling Time titles by the lot or the group is likely to be most warmly greeted by the publishing division's Southern Progress Corp. The Birmingham, Ala., group, which publishes Southern Living, Cooking Light and five other magazines, eked out a 1.2% gain in advertising dollars last year on a 2.8% decline in ad pages. This, after May 9: Southern Progress: Bewkes' next focus?: Industry watchers expect the Time Warner CEO to shed the magazine publisher. - Richard Morgan July 24, 2007: Out of Time: In the cut-throat world of magazine publishing, Robin Domeniconi has not only survived but thrived. Until March, Domeniconi was president of Time's media group, where she oversaw about 145 titles, including Time and Fortune. This followed seven years as president and publisher of Real Simple Magazine. Now, Domeniconi, 45, is embarking on a new career in private equity, having signed on as a consultant in the media division of Avista Capital Partners in New York. - Amy Wu Bonnier, Working Mother Sept. 25, 2008: MCG Capital sells Working Mother: The U.S. division of Swedish media and publishing giant Bonnier AB announced the acquisition of Working Mother Media Inc. for a price a source put at less than $10 million. New York-based Working Mother, which bills itself as "the largest multimedia company in the country focused on the advancement of women and diversity," was acquired from majority partner MCG Capital Corp. and founder, minority owner and current CEO Carol Evans. - Richard Morgan Delish.com Sept. 24, 2008: Food for thought: MSN-Hearst joint venture: MSN and Hearst Magazines Digital Media have teamed up to create a joint venture called Delish.com. The online publication was created by Hearst for the MSN Web site as its recipe and food channel. Hearst supplies the content, foodies flock to the site, and MSN sells ads. - Maria Woehr Informa, Lloyd's List, United Business Media Sept. 19, 2008: Informa loses suitor: A consortium led by Providence Equity Partners LLC withdrew a £3.13 billion ($5.7 billion) proposal for business-to-business publisher Informa plc, abandoning one of Europe's biggest leveraged buyouts attempts since the credit crunch began. The consortium had made the original proposal for the publisher of Lloyd's List shipping magazine around early July, just days after Informa ended merger talks with United Business Media plc. The retreat of the Providence group marks the second time in two years that Informa has lost a buyout suitor. - Luisa Beltran Wasserstein near deal for Cygnus? Aug. 15, 2008: Wasserstein near deal for Cygnus: The burgeoning B2B empire of Wasserstein & Co. LP is slated for further expansion in a few weeks through the acquisition of Cygnus Business Media Inc. for an amount sources put near $220 million. - Richard Morgan Summit Business, WiesnerMedia July 17, 2008: Summit Business takes WeisnerMedia: Summit Business Media LLC, a New York portfolio company of Chicago private equity firm Wind Point Partners LLC, has acquired WiesnerMedia Financial Group. Centennial, Colo.-based WeisnerMedia provides magazines and Web sites for insurance, financial and benefits advisers, while Summit Business also publishes books and magazines for the insurance, investment and professional services markets. - Luisa Beltran Vance Publishing, CattleNetwork.com July 17, 2008: Vance Publishing harvests ag sites: Vance Publishing Corp. said Thursday it has struck its first purely digital acquisition by purchasing digital properties CattleStore, CattleNetwork and AgNetwork from Integrated Management Information Inc. Vance publishes a line of magazines for the salon, interior decorating, and food and farming industries, as well as custom publications. CattleNetwork.com offers news and educational content to the dairy, cattle and feedlot industries. CattleStore is an ag supply retail site, and AgNetwork offers online agricultural news. - Olaf de Senerpont Domis Virgo Holdings Feb. 28, 2008: Arlington Capital takes Virgo Holdings: Washington private equity firm Arlington Capital Partners said Feb. 25 that it purchased business information services company Virgo Holdings Inc. for undisclosed terms. The Phoenix target produces trade shows and conferences and publishes 17 national trade magazines in the natural products, healthcare, telecommunications industries. It also runs online training and accreditation programs. - Christine Idzelis VeloNews, Inside Triathlon Feb. 11, 2008: Falconhead adds publisher: New York private equity firm Falconhead Capital LLC said Feb. 11 it is folding cycling publisher Inside Communications Inc. into its Competitor Group Inc. portfolio company. Competitor Group focuses on endurance sports such as marathons, triathalons and cycling. Acquiring Boulder, Colo.-based Inside Communications will bring two publications under its wing: VeloNews, a cycling magazine that started in the 1970s under the name Northeast Bicycle News, and Inside Triathlon, which dates to the 1980s. - Chris Nolter See Testing his endurance for the backstory. FT Deutsch to join Capital, Börse Online Jan. 31, 2008: Bertelsmann takes over FT Deutsch: The publishing unit of German media titan Bertelsmann AG on Jan. 30 agreed to buy the half of the unprofitable Financial Times Deutschland venture it doesn't already own from British partner Pearson plc.The paper will now become part of Hamburg-based Gruner + Jahr's business magazines, which include Capital and Börse Online. Last year, Pearson had hoped to sell the stake to Germany's leading news magazine, Der Spiegel, but the publication's employee owners feared the projected synergies wouldn't materialize and worried that it would cannibalize sales and content from its own Manager Magazin business title. - Andrew Bulkeley Emap-Apax-Guardian Media, Heinrich Bauer Verlag-FHM Dec. 21, 2007: Apax, Guardian to buy Emap: British magazine publisher Emap plc agreed Dec. 21 to sell itself and its business-to-business operations to Guardian Media Group plc and private equity firm Apax Partners Worldwide LLP for about £1 billion ($1.98 billion). Observers had thought Emap would remain as a standalone business after agreeing earlier this month to sell its consumer media operations, which includes the salty men's magazine FHM, to German publishing group Heinrich Bauer Verlag KG for £1.14 billion. The company at that time said it had had no bids for the rump businesses, but Apax and Guardian Media, publisher of the left-wing U.K. newspaper The Guardian, teamed up to form Eden Bidco, which submitted a winning bid for Emap and the B2B operations. - Peter Moreira Emap Australia Sept. 13, 2007: ACP buys Emap Australia: London media group Emap said Sept. 12 that it has sold Emap Australia to ACP Magazines Ltd. for A$94 million ($79 million) in cash. In the year ended March 31, the Emap business, which includes Zoo, FHM, Empire, Mother & Baby and Pregnancy & Birth, posted an operating profit of A$2 million on revenue of A$66 million. Emap commenced the review of its Australian consumer magazines business in May. - Phineas Lambert Publishing Group Dec. 12, 2007: Bain, Shamrock buy Publishing Group: Publishing Group of America Inc., which puts out supplemental magazines found in local newspapers, was acquired by Bain Capital Ventures and Shamrock Capital Growth Fund for an undisclosed amount, the buyers said late Dec. 12. - Paul Bonanos FindArticles.com Nov. 9, 2007: Cnet acquires FindArticles.com: San Francisco-based Internet media company Cnet Networks Inc. on Nov. 8 said it entered into an agreement to acquire the FindArticles.com division from LookSmart Ltd. for $20.5 million. FindArticles.com houses about 11 million articles from more than 3,000 magazines, journals, trade publications and newspapers. RBC Capital Markets Corp. was financial adviser to San Francisco-based LookSmart. - David Shabelman Ebitda Media Sept. 19, 2007: Veronis invests in Ebitda Media: New York private equity firm Veronis Suhler Stevenson said it would provide acquisition financing and growth capital to Ebitda Media LLC, a Los Angeles company that invests in B2B trade shows, conferences, magazines and digital media. Ebitda Media most recently acquired Green Media Enterprises LLC, which operates trade shows for environmentally friendly products and technologies. - David Carey Engel Publishing Sept. 5: Engel Publishing changes hands: Canon Communications LLC, a Los Angeles portfolio company of Charlie McCurdy's Apprise Media LLC, announced Sept. 4 the acquisition of Engel Publishing Partners, a B2B publisher serving the pharmaceutical market. Titles published by Newtown, Pa.-based Engel include Med Ad News, R&D Directions magazines and PharmaLive.com. Engel is Canon's fifth acquisition in the past two years. - Richard Morgan Modern Luxury Media July 6, 2007: Thoroughly modern: In January 2003, when the broad advertising market was just beginning to rebound from the Sept. 11 terrorist attacks, Michael Kong, head of Modern Luxury Media LLC, was touting his company's controlled circulation model for magazines aimed at high-income readers. - Luisa Beltran May 31, 2007: Modern Luxury goes for $250M: Clarity Partners LP said May 31 it is leading an investor group that has agreed to buy upscale magazine publisher Modern Luxury Media in a deal sources said is valued at $250 million. Shamrock Capital Advisors, the media-focused private equity firm founded by Roy E. Disney, will sell Clarity its majority stake in the publisher, a statement from the buyer said. Modern Luxury publishes 25 titles including Angeleno, CS (formerly Chicago Social), Atlantan, Front Desk Chicago, Front Desk Los Angeles and Riviera. - Luisa Beltran Active Interest, Restore, Backpacker July 7, 2007: Active Interest buys Restore titles: Efrem Zimbalist III's Active Interest Media Inc. said July 5 it is buying home improvement magazines and Web sites from Restore Media LLC of Washington. El Segundo, Calif.-based Active Interest Media is acquiring Old-House Journal and Old-House Journal's New Old House. Zimbalist is the former CEO of Times Mirror Magazines, and his latest venture has backing from Wind Point Partners. The buyer owns Yoga Journal and Vegetarian Times. - Chris Notler May 18, 2007: Active Interest hoists Backpacker: Enthusiast publisher and event company Active Interest Media said May 17 it has purchased Backpacker Magazine from Rodale Inc. El Segundo, Calif.-based Active Interest Media has backing from Chicago's Wind Point Partners and owns such titles such as Yoga Journal and Vegetarian Times. - Chris Nolter ALM July 5, 2007: Incisive buys legal publisher ALM: Incisive Media plc, a British business information group backed by Apax Partners, will acquire U.S. legal publisher ALM Media Holdings Inc. for $630 million, Incisive said July 5. The seller is Wasserstein & Co., a New York private equity firm. (Wasserstein & Co. is the parent of the fund that owns The Deal LLC.) - Christine Idzelis and Phineas Lambert Niche Media June 26, 2007: Three media companies unite: Greenspun Media Group, Niche Media Holdings and Ocean Drive Media Group have agreed to form a strategic partnership uniting the founders, Brian Greenspun, Jason Binn and Jerry Powers. Greenspun publishes City Center, Vegas, Venetian Style and Wynn, while Niche Media's collection includes Aspen Peak, Boston Common, Capitol File, Gotham, Hamptons and Los Angeles Confidential, and Ocean Drive Media Group offers Art Basel, Atlanta Peach, Bal Harbour, Ocean Drive, Ocean Drive Espanol and Florida InsideOut. - Vipal Monga Healia June 19, 2007: Meredith downloads Web firm Healia: Media and marketing outfit Meredith Corp. said June 18 that it is buying health-oriented Web search engine Healia Inc. Des Moines, Iowa-based Meredith publishes magazines such as Better Homes and Gardens and Ladies' Home Journal, and also owns television stations. - Chris Nolter Wicks Business Information June 8, 2007: Summit adds Wicks finance titles: Bill Reilly's Summit Business Media LLC agreed June 8 to acquire Wicks Business Information LLC, a B2B publisher serving the legal and financial-service professions, for an amount sources put between $75 million and $80 million. WBI, a portfolio company inside the Wicks Group of Cos., publishes Investment Advisor, Credit Union Times, Inside Counsel and Treasury & Risk magazines, as well as their attendant Web sites. The Fairfield., Conn.-based company's seminar unit, Executive Enterprises, offers more than 100 specialized courses each year to accountants, lawyers and tax professionals. Reilly formed New York-based Summit last year with backing from Wind Point Partners, a private equity firm with offices in Chicago and Southfield, Mich. The partnership was made public last November when, on a single day, Summit announced the acquisition of both Highline Media LLC and Pfingsten Publishing LLC of Erlanger, Ky., and Cleveland, respectively, for about $100 million apiece. - Richard Morgan Enthusiast MediaFive months after selling off 17 leisure titles to New York buyout shop InterMedia Partners LP, Primedia Inc. has made a significant divestiture -- its Enthusiast Media division, which includes more than 70 publications -- from Motor Trend to Soap Opera Digest -- 90 Web sites and 65 events that collectively saw $500 million-plus in revenue in 2006. Primedia unloaded the pubs to Source Interlink Cos. in an all-cash deal worth nearly $1.2 billion. The buyer, a media distributor, could also set its sights on a takeover of American Media Inc., beyond just the five titles the company put on the block in June 2006, The Deal's Richard Morgan points out. Meanwhile, the CEO of British publisher Emap plc abruptly resigned May 17 further raising expectations the publisher could be sold. BUYING AND SELLING Primedia revealed Feb. 9 the unit was on the block and first-round bids came due March 16 and the lot was thought likely to fetch about $1 billion. The PEM news came two months after Primedia unveiled plans to sell 17 of its leisure titles to New York private equity firm InterMedia Partners LP for $170 million. The company unloaded its hunting, fishing and shooting titles to InterMedia Outdoor, Inc., to focus on its core products, and continue to target the 18- to 34-year-old male reader, Dean Nelson, its chairman, president and chief executive said in a statement. It's the latest move for a company Morgan has called Primedia "the greatest M&A machine in magazines." In 2006, the publisher's divestiture ring was steady. Earlier in 2006, Primedia hired Goldman to sell its crafts publications unit, which generated revenue of $60 million in 2005. Nine months later, the company sold titles including Creating Keepsakes, McCall's Quilting, Sew News, Simple Scrapbooks and Step by Step Beads, and related assets to Sandler Capital portfolio company Enthusiast Media LLC for up to $132 million, and other craft titles to a unit of Aspire Media LLC, a Loveland, Colo., enthusiast media outfit backed by Chicago's Frontenac Co. and Catalyst Investors of New York. Shedding titles, it certainly isn't alone. GONE SHOPPING After nearly a year of speculation, Dennis Publishing Inc. announced in February that it is shopping its Maxim--including its 31 international editions--Blender and Stuff titles. The lot, which likely includes the publisher's brand extensions, but excludes newsweekly aptly named The Week, could go for between $400 million and $500 million, sources told The Deal's Richard Morgan. In a similar move to cling to its strongest titles and trim those that it deems ancillary, Time Warner Inc. announced Jan. 25 it had sold a slate of 18 Time Inc. magazines to Stockholm-based Bonnier AB's magazine group for what sources told The Deal was between $200 million and $250 million. The deal makes the buyer one of the largest consumer publishers in the U.S., it said, coupling its newest titles with its World Publications' travel and leisure magazines. Time put the niche publications on the block in September and second round bids were due Jan. 22. The titles to change hands include: Skiing, MotorBoating & Yachting, Popular Science and Field & Stream, as well as 11 others that Time acquired through a $475 million deal with Tribune Co. (For more on Tribune, see a related Dealwatch.)
The company plans, instead, to focus on its biggest brands, Reuters said. According to a Mediaweek piece in September when the auction was announced, the titles to be divested don't fit with the overall strategy at the publishing group--to compete efficiently, chief executive Ann Moore has been shutting down titles, like Teen People in August, and trimming staff, including 550 employees, some high-level, in the last year. In keeping with the "big-media mentality," the company hired "big bank" J.P. Morgan Chase & Co. to advise on the sale. At the time, some sources raised questions about the logic in doing so instead of turning to boutique media bankers. Once source told The Deal that after an initial meeting, the J.P. Morgan bankers were "collectively puzzled by the peculiarities of valuing publishing assets." TIME AFTER TIME Others engaged in title slim-downs include AMI, which announced plans in June to shop body building and fitness titles Flex, Muscle & Fitness and Muscle & Fitness Hers, as well as Spanish-language publication Mira! and country music magazine Country Weekly. The news came months after the company stopped publishing Spanish-language fitness magazine Shape en Espanol, MPH Magazine, which focuses on car racing, and gossip glossy Celebrity Living.
In a weekly column in September, Morgan summed up "The entertainment simplex" surrounding such companies with one thought: "The trend among media companies is to define what they are divest what they are not." And in doing so, they hope to make the right bets. RICH UNDERTONES OF PRIVATE EQUITY And when these assets have gone up for grabs, private equity firms have been quick to take note.
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