Posted by: Jon Fine on October 19
Regarding the 18 magazines from its Time4Media and Parenting groups that Time Inc. put up for sale in September, we hear:
Initial bids are due October 25. (I’d bet that Time Inc. is hustling to get this done by the end of year.)
That revenues for all the magazines are somewhere north of $260 million and somewhere south of $300 million.
That their combined profit margin is around 8%—or somewhere north of $20 million and somewhere south of $25 million.
I’ll bet Time Inc. gets less than $300 million for the magazines.
You have a breakdown for print revenue versus online revenue for the magazine properties? That will help us zero in on a price.
NY Time P/E = 17
E.W. Scripps p/e = 32
Gannet p/e = 11.5
Tribune = 30.
I can see how you got to a p/e of 15 but there is so much private equity around desparate to find big deals in which to park all that cash. I'll bet the multiple is even higher. And every bidder is going to have some genius way to increse margins to that the earnings number is higher too. I'm betting $400+ by the time egos and all are done. (That is assuming of course that usually weak Time/Warner management doesn't give the shop away).
Dave: I don't know what the online revenues are for the titles, but given that A. they're magazines, and B. the big ones are about hunting and parenting, I'm guess the figure amounts to a low single digit percentage of total revenues.
And how aggressively can private equity get? These are not magazines with old-Time-Inc.-esque fat operations, and it's hard to imagine any of them have truly stellar growth prospects.
I do not want any futher of your magazines. I only want it for six months. I realy do not read this mag. at all. I got this thru another magazine. So please discontinue this magazine. Thank You....
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