Times Mirror Suitors Step up to the Plate

Folio: The Magazine for Magazine Management, August, 2000 by Matthew Schwartz

Three of the magazine industry's most visible players have emerged as potential buyers of Times Mirror Magazines, say sources. They are media investment banking firm Veronis, Suhler & Associates (backing existing TMM management), Ziff Davis CEO Jim Dunning and Emap USA--which appears to be the early front-runner. (See "Emap looks for traction," page 28.)

Times Mirror Magazines president and CEO Jason E. Klein was unable to comment.

TMM--which now has 20 titles and is launching TransWorld Motocross this fall--was put up for sale in late June, just two weeks after its parent company was bought by the Tribune Company for $8 billion.

"The gem is Golf Magazine, but some of the others are tired, old books," says Martin Walker, an industry consultant and chairman of Walker Communications. "It's not the kind of company where someone can come in, reinvigorate the titles and bring back the magic."

Yet others say it should garner a healthy price. "It's got a lot of revenue and brand awareness," says Steve Rosenfield, president of New York-based Media Research Group.

Joseph Berkery, president of the New York-based investment banking firm Berkery, Noyes & Co., adds that the "appetite isn't what it used to be" for traditional publishing companies, "but there's still a ton of money available from financial buyers."

Despite its emphasis on special niche publications and circulation woes for some titles, Times Mirror's operating profit was $25.9 million last year, compared to $21.3 million in 1998. Revenues in 1999 were $241.7 million, compared to $227.1 million in 1998.