This is a blockbuster story from The New York Post. After a little over a year of purchasing the Hollywood Reporter, the publication along with it’s online properties and other assets are for sale.
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Claire Atkinson of The New York Post reports in today’s edition that the Hollywood Reporter, music giant Billboard Magazine, Brandweek, Mediaweek AdWeek and Backstage Magazine are all up for sale.
Apparently the group of publications aren’t making the kind of money that current owners Guggenheim Partners and Pluribus Capital Management would like to see from the group. They paid $70 million for the Reporter and its partner properties 15 months ago.
The owners deny the for sale sign is up and their showing the property to potential buyers. But according to Claire’s story “earnings have been weak and the only way out is to merge into something bigger” said her source.
Bad news for a lot of employees there as the group made a significant increase in top level editors and writers after they were bought by Guggenheim and Pluribus. But once again hiring expensive people to run the place and not focusing on advertising sales is always the biggest mistake media companies make. You gotta have great advertising sales people and not just good content. One does not automatically bring in the other, meaning really good, breaking stories does not lead to higher advertising sales.
A few people are going to be out of work there. And that’s a real shame and an example of a poor investment and poor management.
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