For all he's worth: Randy Jones' latest financial play reflects a brash belief system in the resilience of affluent markets and the power of his own vision

Folio: The Magazine for Magazine Management, March, 2002 by Beth Snyder Bulik

Randy Jones makes no apologies for living large. The 46-year-old chief executive of Worth Media hangs with Wall Street tycoons, throws black-tie affairs for the rich and connected, and has his social life chronicled in New York's best-read gossip columns. Evidence of this platinum-card lifestyle is conspicuously lined up along a large table under a window that frames a spectacular view of the Chrysler Building in his Lexington Avenue high-rise office. Next to pictures of his elegant wife, Connie, and their three handsome sons on vacations are photos of Jones hobnobbing with the likes of Liz Smith, Barbara Walters, Jack Kemp and Ivana Trump. Completing the collection is a framed photo of the tycoon from the TV sitcom "Gilligan's Island." It was a gag gift from a colleague who fondly calls Jones the Thurston Howell III of Worth.

And just like the actor Jim Backus, Jones is convincing in his character role. For the past 10 years he's carefully built the image of a fast-moving, successful media mogul, but when you move the lens a little closer, you begin to wonder if the perception doesn't clash with reality. Virtually every Worth offshoot Jones has attempted-including three other magazines and a Web portal for the super wealthy-has failed, and $75 million has been sunk into the flagship publication that ranks as the number-five magazine in a five-title category.

While Jones has never managed to create the kind of buzz that other publishing luminaries like Tina Brown or Steve Brill produce, he does share their ability to get financiers to bankroll his high-flying ventures. And although Jones definitely hasn't met with more success than Brown or Brill, he has somehow survived an era that they did not. As rumors swirled last month that Worth was a breath away from extinction, Jones charged in, exercising an option to buy out New York private investment firm GSC Partners. Jones is now the almost-sole owner, holding 92.5 percent of Worth Media. The rest is retained by GSC and some members of Worth management.

For the moment, the move may make Jones the slickest man in magazine publishing. Many are wondering just how he concocted this latest flash of financial wizardry. "He's amazing at finding money at the last minute," says one long-time industry observer.

Jones says the buyback was a "proactive" choice, although others in the industry claim his hand was forced by the expiration of a funding time limit. "They ran out of money, and the investors said they wouldn't put in any more. Jones told them he wouldn't put in any more unless they got out. So they did," one investment banker says.

Jones declined to comment on the details of the deal, but several investment bankers say they believe no money was paid upfront. "That deal was back-loaded. I'm sure no money changed hands," says one. Adds another, "I keep hearing $15 million. He probably said, if these things occur, then I'll give you [a certain] amount of money. Or maybe if he sells it, they get the first $15 million."

Regardless of exactly how the deal went down, the fact is that Jones is convinced he has a few more tricks up his custom-made, pin-stripped sleeve. He says he is "exhilarated" by this large new personal commitment. His long-range goal for Worth Media is to expand Worth and launch two new titles--a shelter magazine and a general culture magazine.

In keeping with other publishers' reverie for multimedia, Jones plans to encircle each title with a panoply of brand extensions ranging from TV, radio and newsletters, to seminars and books. Within the next year, he says, he'll begin assembling Worth's multimedia master plan. In fact, he has already begun crafting the parts. Jones cut a deal with ABC News for branded radio time. The first Worth seminar for-and about-high net worth will be held June 5 this year, in conjunction with online private equity marketplace Futuredex.

His first book, Worth's Guide to the Greatest Stock Picks of All Time, is due out in November from Random House's Crown business publishing unit. (Says Jones: "And I got a bigger advance than Lou Dobbs, so how about that?") Jones also plans to test market several newsletters in a variety of financial markets like hedge funds, alternative investing and estate planning. In his downtime, he's negotiating with networks for branded TV time.

Still, Worth's white knight has been down this road before. In October 2000, he launched Worth.com, a "Yahoo for the rich" that was his late-to-the-party grab at Internet lucre. But when the market shifted, a lot of people lost their jobs. His three magazines--American Benefactor, a charitable-giving magazine aimed at high-net-worth donors; Civilization, a global culture magazine purchased from the Library of Congress; and Equity, a personal finance title for women--folded quickly. All were good ideas, just ahead of their time, says Jones. "I don't want to be ahead of my time ever again," he adds.

By any traditional measure, his publishing track record doesn't exactly inspire awe. And given that Jones is now up against one of the toughest ad recessions the industry has ever seen, and that he's a single-title publisher in a world where scale matters, you begin to wonder: Will his talent for self-preservation save him this time?