Dunning buys Ziff-Davis; faces 25.3% ad page drop ;Publishing unit remains distinct from online one.(James D. Dunning Jr.; Ziff-Davis Publishing)(Brief Article)

Advertising Age, December, 1999 by Kerwin, Ann Marie

Publishing turnaround specialist James D. Dunning Jr. is taking on Ziff-Davis Publishing.

Mr. Dunning and Chicago-based investment firm Willis Stein & Partners agreed Dec. 13 to purchase the technology magazine publisher from Ziff-Davis Inc. for $780 million in cash. The final price fell below the $1 billion many investors believed the publishing unit would fetch.

On the day the sale was announced, the stock declined $1.1875, down 6.3% to $17.625.

Kevin Gruenich, media analyst for Bear, Stearns & Co., was surprised at the low price.

"When he bought Petersen, it was seen as a high price for a turnaround," he noted, "but this is a low price for a turnaround. So that should work for him."

The deal encompasses more than 80...

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