Primedia Enthuiast Mags Up For Grabs
Primedia’s 73 enthusiast magazines, 90 enthusiast websites and 65 events are up for sale to the highest bidder. In an effort to reduce the company’s $1.3 billion debt, Primedia hopes to fetch $1 billion from the sale.
Who will end up with our favorites, “Motor Trend”, “Muscle Mustangs & Fast Fords”, and “Mopar Muscle”? Only time will tell.
PRIMEDIA Announces Intention to Sell Enthusiast Media Segment
NEW YORK, NY (February 9, 2007) – PRIMEDIA Inc. (NYSE: PRM) today announced that its Board of Directors has authorized the Company to explore the sale of its Enthusiast Media segment (PEM). PRIMEDIA has retained Goldman Sachs and Lehman Brothers to manage this process.
PEM is the number one special interest media company in the U.S. with over 70 publications, 90 leading websites and over 65 events, with revenues of over $500 million in 2006, excluding the recently divested Outdoors Group. Some of PEM’s best known assets include Motor Trend, Automobile, Hot Rod, Automotive.com, Power and Motoryacht and Surfer.
Dean Nelson, Chairman, President and CEO of PRIMEDIA, said, “The Board believes the market environment is extremely favorable for the sale of PEM. We have spent considerable time reviewing strategic options for the Company and have been exploring, at the Board’s direction, a possible spin off of our Consumer Source division, creating two distinct publicly traded companies. We have received a favorable IRS ruling and virtually completed complying with the Securities and Exchange Commission regulations. Therefore, spinning off the Consumer Source business remains an option.
“However, given the multiples PRIMEDIA received from the sale of the Outdoors Group and the particularly strong investment and debt markets, the Board believes the best course of action for PRIMEDIA shareholders is exploring the complete sale of PEM,” Mr. Nelson said. “In addition, we are seeing positive results from our online and product investments, which we believe will be valued by potential acquirers. We believe there will be strong appetite for our leading brands.” Mr. Nelson added, “The Company will apply the proceeds from the sale to pay down debt.”
Category: News
