Press Release: Condé Nast and Hearst Magazines Partner to Create PubWorx
NEW YORK, February 4, 2016 – Condé Nast and Hearst Magazines, two of the world’s largest magazine mediacompanies, today announced the formation of PubWorx, a new, independent company that will manage production, procurement and circulation management for both
publishers, and offer custom programs across the industry. Industry veteran Al Perruzza, most recently executive vice president, business operations at Reader’s Digest, has been appointed president and CEO of PubWorx, and will report to a board comprised of executives from Condé Nast and Hearst Magazines. The announcement was made by David Carey, president of Hearst Magazines, and Bob Sauerberg, president and chief executive officer of Condé Nast.
PubWorx, a 50/50 joint venture, will incorporate staff and back-office functions from Condé Nast and Hearst Magazines, and will offer third-party companies a range of products and services, including procurement, production, and full-service, end-to-end circulation management operations.
“PubWorx is an innovative new company that combines the commitment to excellence and publishing expertise of both Condé Nast and Hearst, and offers it to third-party companies for the first time,” Sauerberg said. “Having the two parent companies as its first clients sets PubWorx up for success and we are looking forward to the new company developing untapped business opportunities with its unique position in the market.”
“We’re thrilled to continue building our business relationship with Condé Nast,” Carey said. “In addition to serving Hearst and Condé Nast, Pubworx will provide important, turn-key infrastructure for the industry, allowing publishers to access the scale of our two companies for production and circulation functions, freeing them to concentrate on innovation, content creation and advertising revenue.”
PubWorx is the latest instance of Hearst and Condé Nast working together to maximize opportunities; the two publishers formed Comag, a marketing and retail distribution company, nearly 40 years ago. Comag U.S. was sold in 2012; Hearst and Condé Nast continue to own and operate the business together in the U.K. In addition, Hearst Newspapers and Advance Publications, parent company of Condé Nast, have worked together on procurement for many years.
Perruzza is a seasoned publishing executive with a successful track record in both private and public sectors. While executive vice president, business operations atReader’s Digest, he introduced a global supply chain organization and executed a fivefold improvement of back-office efficiency across Reader’s Digest companies. He holds a Bachelor of Science degree from City College of New York, a Masters from Columbia University and an MBA from Pace University.
“I’ve spent my career developing and perfecting end-to-end operational functions at scale,” Perruzza said. “I’m excited to work with the most talented teams in the business to drive innovation for Hearst and Condé Nast, as well work with colleagues across the industry to build tailored, impactful programs that position their organizations for increased efficiency and growth.”
For clients, services are customized and will include:
Procurement. Purchasing and supply chain management including paper, printing and distribution.
Production. Efficient, high-quality work flows, systems and technologies; quality control and distribution planning for subscription and retail delivery.
Circulation Management. Management of subscription acquisition and retention operations, and retail operations including in-store programs.
About Hearst Magazines
Hearst Magazines is a unit of Hearst (www.hearst.com), one of the nation's largest diversified media and information companies. With 21 titles in the U.S., Hearst Magazines reaches 78 million readers and 70 million site visitors (comScore), with a social media following of 88 million. In addition, the company publishes close to 300 editions and 200 websites around the world. Hearst Magazines Digital Media includes 21 websites for brands such as Cosmopolitan, ELLE, ELLE DECOR, Esquire,Good Housekeeping, Marie Claire, Seventeen and Delish.com. The company also includes iCrossing, a global, full-service digital marketing agency.
About Condé Nast
Condé Nast is a premier media company renowned for producing the highest quality content for the world's most influential audiences. Attracting 143 million consumers across its industry-leading print, digital and video brands, the company's portfolio includes some of the most iconic titles in media: Vogue, Vanity Fair, Glamour, Brides, Self, GQ, The New Yorker, Condé Nast Traveler, Allure, Architectural Digest, Bon Appétit, Epicurious, Wired, W, Golf Digest, Golf World, Teen Vogue, Ars Technica, The Scene and Pitchfork. The company's newest division, Condé Nast Entertainment, was launched in 2011 to develop film, television and premium digital video programming. In 2015, the corporation was recognized as one of the fastest-growing companies in the digital video business and was one of LinkedIn's Top 25 Most In-Demand Employers. The company has recently relocated to its new global headquarters at 1 World Trade Center, where it plays a leading role in the resurgence of Lower Manhattan.