Forbes Media LLC's effort to find a buyer is running into trouble, with one potential bidder officially out of the running and two others no longer in active talks, people with knowledge of the matter said.
Germany's Axel Springer SE, which publishes the Russian edition of the magazine, isn't involved in any process to acquire Forbes, Edda Fels, a spokeswoman, said yesterday. The company had been interested in bidding for the New York-based publisher, people with knowledge of the matter said in February.
Financial documents being shown to potential buyers raise questions about its future growth. Has Forbes peaked? And can it justify the high price it's seeking?
The bidding for Forbes is now moving into round two, with a sale expected within a month. A surprising set of largely non-U.S. buyers is flipping through the pages of a memorandum prepared by Deutsche Bank, which Forbes has tasked with shopping the property. A careful reading of that 62-page confidential document reveals a lot about the company's much-heralded forays into new businesses.
Amid its larger company struggles, Forbes has been trying to change, adapt and adjust to what Chief Product Officer Lewis D'Vorkin calls "wrenching transitions in the news business." Online, the 95-year-old business magazine has shaken up its editorial model, revamped its technology, introduced new types of advertising, and challenged conventional wisdom in the magazine publishing world.
"The economics of journalism have changed -- forever," D'Vorkin wrote in an email to me. "Marketers will not pay for digital ads what they pay for print ads.
Facebook’s billion-dollar purchase of Instagram made a lot of noise — so much noise that few people noticed when the company snapped up two more start-ups just a few days later.
The shopping spree that snagged Tagtile and Glancee was just business as usual for Facebook. It buys small companies on a regular basis — almost two dozen over the last two years — to beef up its team of talented engineers, add to the site’s offerings and sharpen competition with rivals.
Forbes Media, which went through a default and a jarring restructuring in 2009-10, is in the hunt to refinance a $50 million loan coming due in July.
None of the half-dozen banks that handled the restructuring want to be involved again, sources said.
The current refinancing is said to be shepherded by the PrinceRidge Group, a midsize New York investment bank.
In a 2006 deal, Elevation Partners, headed by U2 frontman Bono and Silicon Valley investor Roger McNamee, took a 45 percent stake in the company — and clearly the investment has not panned out the way investors had hoped.
Steve Forbes, Chairman and Editor in Chief of Forbes Media, today introduced the new President and CEO of the company, Mike Perlis.
Summit Publications, LLC announced today that it has purchased the iconic Mountain Gazette from Skram Media.
Forbes Media has acquired FlipGloss and its Digital Glossy Insert photo publishing platform for an undisclosed amount. FlipGloss was fully funded by Forbes Media but was previously not considered a subsidiary of the media group. Founded by former Yahoo! digital music executives, FlipGloss has a host of prominent advisors, including Marc Bodnick from Elevation Partners, former Forbes publisher Jim Berrian, and the founders of Launch.com, Dave Goldberg and Bob Roback.