Open Enrollment | Subscribe to Publishing Executive HERE
Connect
Follow us on
Advertisement
 
Senior Editor

Pub Talk

By James Sturdivant

About James

 

Industry Insiders

The Insiders
Are You Protecting Your Site From Click Fraud?
Apr 23, 2015

By now magazine publishers have expanded their properties to the web, providing readers a fast, easy way to access content....



Media Vent

Bob Sacks
Do New ASME Rules Damage Magazine Industry's Integrity?
Apr 16, 2015

It seems to me that my opinion on the changes to the ASME guidelines will be in the minority. To...



Publishers' Dojo

Linda Ruth
Online Resources You Might Not Be Using, Part 1: Content Analytics
Apr 13, 2015

Publishers who have worked in internet marketing since the beginning might remember, as I do, when lots of tedious programming...



The Digital Market

Thea Selby
Top 5 Trends Affecting App Publishing
Mar 9, 2015

This is a great time of the year to look at the top trends of 2014 and gain insights for...



B2B Beat

Andy Kowl
Earned Media vs. Native Advertising: Smart Publishers Find a Path for Advertiser Content
Mar 3, 2015

An insidious term has started to be widely used these past couple of years. As publishers, we must stamp out...



Publisher's Paradox

Andrew Davis
Publisher’s Paradox: Your Newsletter Subscribers Are Being Overfed
Apr 28, 2014

Charlie Magazine, based in Charleston, South Carolina, isn't asking its readers to subscribe to everything. Instead, Charlie is inviting readers...



Have We Seen the End of the Big Media Play?

 

Buried in a recent press release from investment bank The Jordan, Edmiston Group, Inc. is a brief overview of mergers and acquisitions activity in the consumer magazine space. Brief, because there's not much to tell—at least from a value standpoint.

"The consumer magazines sector saw a 34% increase in number of deals, but a sharp decline in deal value, as there were no $100+ million transactions in this sector in 2012," the release states. "Throughout the year, acquisitions in this sector were primarily of small publishing companies and individual magazines."

It's hard to imagine this situation changing any time soon. The magazine and newspaper giants are trying to hold their own, with Time-Warner and News Corp. seeing losses in their publication sectors offset by profits elsewhere. News Corp. is, in fact, spinning off its publications division in order to make its TV and other media properties (to be renamed the "Fox Group") more attractive to investors. It does not exactly point to a tasty buyers market for storied brands like Time, The New York Post or Sports Illustrated.

Gone are the days of mass consolidation in newspapers and magazines; the global expansion (the Hearst-Lagardere deal of 2011 is likely the last of its kind); the liquidity enabled by high-profit-margin media enterprises. There were rumors a few weeks back of Bloomberg buying the Financial Times, but it hasn't happened. It probably won't (though the Nieman Lab's Ken Doctor predicts 2013 will be the year of "Trophy Newspapers," by which he means Warren Buffett-style rescues of storied broadsheets at bargain-basement rates).

On the other hand, there is that increasing M&A activity among small, niche publishers. JEGI cites as one example Modern Luxury's acquisition of Aspen Magazine from Ridge Publications. This is where we can expect future growth to occur.

COMMENTS

Click here to leave a comment...
Comment *
Most Recent Comments: