Consumer Magazine Deal Market 'Reduced to Tatters' in 2008
Another year-end report on the mergers and acquisitions market of consumer magazines showed a sharp downward spike in both the number and value of deals in this segment in 2008. New York M&A firm Whitestone Communications reported yesterday that the number of consumer magazine transactions dropped from 30 in 2007 to 24 in 2008 and that the value of those deals fell precipitously -- from $5.1 billion to $173 million.
"The consumer magazine deal market was reduced to tatters in 2008 due to two major forces striking at the same time," said Ed Fitzell, managing director, Whitestone Communications. We had the Internet taking more advertising dollars away from print media while the economy continued downward, reducing buyer interest in acquisitions in this segment."
Major 2008 deals included Consumers Union's acquisition of Consumerist.com from Gawker Media and Bonnier Corp.'s purchase of Working Mother Media (valued between $20-$30 million).