NewBay Acquires Future US Music Division
The Jordan, Edminston Group, Inc (JEGI) represented Future and helped negotiate the terms of sale between the two companies. According to a press release from JEGI, Future plc sold its US Music Division in an effort to reduce its scale of exposure to the U.S. Future reported in November that its U.S. revenues were down 13 percent in 2011 from the previous year, compared to two percent in its core market of Britain. CEO Mark Wood told The Guardian at the time that the company had "no plans at all to sell ... off" its U.S. subsidiary.
As an international special-interest media group, Future plc publishes 200 different magazines, apps, web sites and events. Future plc is the U.K.'s leading exporter and licensor of magazine content, as it exports publications to 89 countries.
"The sale represents a big step forward in our strategy to streamline our U.S. business and return it to profitability by 2013," Wood said in yesterday's JEGI press release. "The merger of our mainstream U.S. operations and our U.K. business is on track, and we are making good progress in reducing costs."
NewBay's acquisition of the US Music Division marks the company's fifth major purchase in the past decade, including the United Business Media's CMP Entertainment Media division in September 2006, IMAS in July 2007, Reed Business Information-US in December 2009 and Penton in February 2011.