Update: Pop the corks: Reuters
Reuters is reporting that the deal is done - then they changed their headline to 'deal expected Tuesday'. Assuming definitive agreement is reached at the DJ board meeting later today, Rupert Murdoch gets the biggest name in financial news reporting. Don't be surprised if we see him wrap the WSJ brand around his new financial news cable channel.
From the report:
"The Bancroft family has accepted," John Prestbo, editor and executive director of Dow Jones Indexes, told reporters in Chicago. He said Dow Jones "will be part of News Corp." Prestbo said the information came from an internal company memo.
New York Times: Murdoch Wanted it More
Showing posts with label Dow Jones. Show all posts
Showing posts with label Dow Jones. Show all posts
Tuesday, July 31, 2007
Dow Jones Cliff Hanger
Apparently, things are on a knife-edge at NewsCorp. The deal deadline was set for Monday 5pm but not all the legal documentation was submitted on time. Murdoch awaits the news with increasing impatience and at the least it appears the margin of victory is going to be very close. Murdoch may win a significant portion of the vote but it looking for a major endorsement of the deal. Analysts suspect he is looking for more than 30% of the Bancroft shareholders to support the deal. Some insiders suggest he has this: With the stock price ready to tumble if the deal falls through - and the stock price fell 5% yesterday - some shareholders may cave and vote with their wallets.
Trib
Forbes: News Corp Unlikely to Proceed with Bid
Reuters
Forbes: The MySpace Guy
Trib
Forbes: News Corp Unlikely to Proceed with Bid
Reuters
Forbes: The MySpace Guy
Wednesday, July 25, 2007
News Corp and Dow Jones
So we should find out within the next week whether the Brancroft family will accept the NewsCorp offer, but I have to wonder whether some type of all-points bulletin went out across the NewsCorp empire: "Don't publish anything low-brow, scandalous or let The Boss influence your thinking". At least until this business is over. It would be bad timing of a momentous nature that could have the Bancroft family perusing some questionable covers of The Post or The Sun or even reading some politically charged editorial in The Times while meeting to determine the fate of the company. And of course if for some reason they missed these indicators, there are rivals like The Daily News that joyously draw them to their attention.
Coincidentally, The New York Times released some private archive material of the owning family, Ochs Sulzberger to the New York Public Library. There is nothing recent yet (although additional material is anticipated to be made available soon) but there are interesting items relating to the relationship between the Editorial philosophy and that of the owners,
Will we ever see Murdoch's personal archive...? Do we want to? What happens if the deal doesn't is not accepted? You can bet that News Corp has an alternative plan ready to roll if the Dow Jones bid fails.
Coincidentally, The New York Times released some private archive material of the owning family, Ochs Sulzberger to the New York Public Library. There is nothing recent yet (although additional material is anticipated to be made available soon) but there are interesting items relating to the relationship between the Editorial philosophy and that of the owners,
Many of the documents reveal the newsroom’s sometimes prickly relationship with its owners. “It’s difficult for me personally to take a position not in accord with the wife of the Publisher,” Edwin L. James, the managing editor, wrote to Arthur Hays Sulzberger on June 22, 1949, after Iphigene Sulzberger complained about placement of a story involving Cardinal Francis Spellman. (A spirited defense of the news desk’s judgment followed.)
Will we ever see Murdoch's personal archive...? Do we want to? What happens if the deal doesn't is not accepted? You can bet that News Corp has an alternative plan ready to roll if the Dow Jones bid fails.
Friday, July 20, 2007
Von Holtzbrinck Resigns from Dow Jones Board
Dieter von Holtzbrinck, the heir to German media conglomerate von Holtzbrinck has resigned in protest over the decision by the DJ board to recommend acceptance of the NewCorp bid for the company. von Holtzbrinck apparently abstained from the vote last week (Post) but had been vocal in recommending the company remain independent. Apparently, the Bancroft family (there are dozens of shareholders) will decide over the next few days/week whether to accept or not, the NewsCorp bid.
(For those unfamiliar with von Holtzbrinck, they are a family owned business operating newspapers, trade publishing, education and digital media businesses in over 80 countries. In the US they own FSG, St Martins, Henry Holt and in the UK they own Macmillan).
In related news, the company posted mixed results (Money) this week with traditional media showing decreases but with international, Barrons and some digital revenues up. Some analysts speculated that the continued softness in DJ's traditional sources of revenue may cause some Bancroft shareholders to take the money and run. In trading, the share price was down slightly based on doubts about whether the deal with NewsCorp would be completed.
(For those unfamiliar with von Holtzbrinck, they are a family owned business operating newspapers, trade publishing, education and digital media businesses in over 80 countries. In the US they own FSG, St Martins, Henry Holt and in the UK they own Macmillan).
In related news, the company posted mixed results (Money) this week with traditional media showing decreases but with international, Barrons and some digital revenues up. Some analysts speculated that the continued softness in DJ's traditional sources of revenue may cause some Bancroft shareholders to take the money and run. In trading, the share price was down slightly based on doubts about whether the deal with NewsCorp would be completed.
Tuesday, June 26, 2007
NYTimes: Hardly the Mike Wallace Treatment
Apparently, I am not the only one that feels that the New York Times' 'expose' on News Corp lacked any depth or provided new information on the manner in which Murdoch runs his business. (Paidcontent) You really have to consider the NYT's motives in this given they are themselves a family run operation similar to Dow Jones that has been left behind by the media revolution and they ran an editorial two weeks ago supporting the family's (supposed) wish to stay independent. It was more than disingenuous and perhaps in the interests of full disclosure they should have mentioned their own dual equity arrangement that keeps the Ochs/Sulzberger fully in control and the public shareholders out in the cold.
(As I may have mentioned, I retain some deep seated resentment towards Rupert Murdoch because as a 14 year old newspaper seller in Melbourne Australia they raised the price of the Herald from 8cents to 10cents and in the process did me out of a virtually guaranteed 2cents on every sale. That added a lot to my daily take and I soon realized that selling newspapers on a street corner was no kind of future).
Murdoch should get Dow Jones if for no other reason that he is willing to rebuild the franchise to compete in a new media, connected and multi-channel world. The Brancrofts aren't and I think that most people would like to see the Wall Street Journal retain and perhaps increase its influence and standing not just in the US but internationally. Murdoch has proven News Corp can manage and grow substantial media properties and Dow Jones will be no different. It is stupid to assume that any proprietorial media property is without bias or doesn't reflect some level of influence from the owner; but, customers (and staff) either support it or not and Murdoch (or the NYT) are not going to undercut the credibility of their properties to spite their revenue.
(As I may have mentioned, I retain some deep seated resentment towards Rupert Murdoch because as a 14 year old newspaper seller in Melbourne Australia they raised the price of the Herald from 8cents to 10cents and in the process did me out of a virtually guaranteed 2cents on every sale. That added a lot to my daily take and I soon realized that selling newspapers on a street corner was no kind of future).
Murdoch should get Dow Jones if for no other reason that he is willing to rebuild the franchise to compete in a new media, connected and multi-channel world. The Brancrofts aren't and I think that most people would like to see the Wall Street Journal retain and perhaps increase its influence and standing not just in the US but internationally. Murdoch has proven News Corp can manage and grow substantial media properties and Dow Jones will be no different. It is stupid to assume that any proprietorial media property is without bias or doesn't reflect some level of influence from the owner; but, customers (and staff) either support it or not and Murdoch (or the NYT) are not going to undercut the credibility of their properties to spite their revenue.
Wednesday, May 23, 2007
Is Pearson Next For Murdoch?
In a recent article about Rupert Murdoch and his bid to acquire Dow Jones, The Economist newspaper reported as an aside that while at the Davos World Economic Forum Murdoch was trying to interest as many PE groups as he could in a combined News Corp/PE bid for Pearson. Dow Jones has always been his preferred business publication and he sees the Dow Jones property as key to the development of his global business channel; however, if the Dow Jones shareholders appear intractable then he is likely to launch an attack on Pearson in order to get his hands on The Financial Times and The Economist Group.
For their part, the Pearson board and top executives have said that they are unwilling to sell or to split up the company. In spite of this consistent message, with the sale of the Thomson Learning business for almost $1.5billion more than Thomson and analysts expected one must wonder when the views of the board begin to diverge from the interests of the shareholders if valuations like this are on offer via PE money.
According to a number of sources, the hold out Bancroft family is set to meet today to discuss the News Corp offer. Murdoch has proven to be fairly patient in his effort to acquire Dow Jones but he has promised a financial network to compete with CNBC and needs content and branding to support that effort. The synergy that will exist between the US based Dow Jones and News Corp and the brand recognition and reach of The Wall Street Journal will trump the larger international presence and brand of The Financial Times. I suspect Murdoch will continue with his full court press on the Bancrofts for the short term - he is unlikely to up his offer - and he is probably willing to gamble on an auction should the Bancroft shareholders decide to seek other offers. While there is a lot of PE money going around, the Murdoch price is a fair one given the trading level prior to the bid. Some have also suggested that the share price will tumble below this original level if Murdoch is rebuffed.
With respect to Pearson there exists a possibility that they could be 'blackmailed' into parting with The Financial Times if someone started to buy up shares of the company; however, this seems unlikely since the moment any group launches any type of offer there will be several additional offers presented almost immediately. I suppose Pearson could defend itself by making a big acquisition and loading up on debt but who would they buy....Dow Jones?
For their part, the Pearson board and top executives have said that they are unwilling to sell or to split up the company. In spite of this consistent message, with the sale of the Thomson Learning business for almost $1.5billion more than Thomson and analysts expected one must wonder when the views of the board begin to diverge from the interests of the shareholders if valuations like this are on offer via PE money.
According to a number of sources, the hold out Bancroft family is set to meet today to discuss the News Corp offer. Murdoch has proven to be fairly patient in his effort to acquire Dow Jones but he has promised a financial network to compete with CNBC and needs content and branding to support that effort. The synergy that will exist between the US based Dow Jones and News Corp and the brand recognition and reach of The Wall Street Journal will trump the larger international presence and brand of The Financial Times. I suspect Murdoch will continue with his full court press on the Bancrofts for the short term - he is unlikely to up his offer - and he is probably willing to gamble on an auction should the Bancroft shareholders decide to seek other offers. While there is a lot of PE money going around, the Murdoch price is a fair one given the trading level prior to the bid. Some have also suggested that the share price will tumble below this original level if Murdoch is rebuffed.
With respect to Pearson there exists a possibility that they could be 'blackmailed' into parting with The Financial Times if someone started to buy up shares of the company; however, this seems unlikely since the moment any group launches any type of offer there will be several additional offers presented almost immediately. I suppose Pearson could defend itself by making a big acquisition and loading up on debt but who would they buy....Dow Jones?
Monday, February 01, 1999
2/1/99: McGrawHill, Primedia, HoughtonMifflin, Dow Jones,
Publishing News: February 1, 1999
The McGraw-Hill Companies Reports 15% Increase in 1998 Earnings
Internet sales Gain at WH Smith
EarthWeb Announces Online Publishing Deals with Seven Leading Book Publishers
Primedia's 1998 Annual Sales Grow to $1.5Billion
Houghton Mifflin Company Reports 1998 Fourth-Quarter and Full-Year Results
EU Probes FT/Dow Jones/Knight Ridder 1996 deal
Mirror Group CEO is Out
The McGraw-Hill Companies Reports 15% Increase in 1998 EarningsThe McGraw-Hill Companies today reported a 15.1% increase in diluted earnings per share to $3.35 for 1998 compared to $2.91 in 1997. Net income for the year grew to $333.1 million and revenue increased 5.5% to $3.7 billion. Excluding an extraordinary loss and other one-time items, diluted earnings per share were $3.37 and net income was $335.4 million.
Educational and Professional Publishing: Revenues in this segment increased 3.0% to $1.6 billion in 1998 and operating profit improved by 7.7% to $202.1 million. Excluding the write-off for CEC in 1998 and the facilities charge in 1997, operating profit increased 11.1% and operating margin improved to 13.5%. "Revenue in the seasonally slow fourth quarter increased 1.9% to $344.7 million and operating profits climbed by 26.0% to $22.4 million. Despite a lighter adoption schedule in the elementary school market in 1998 and challenging comparisons created by a 25.4% increase in revenue last year, our elementary-high school operations produced a 7.6% gain in revenue to $831.5 million. Outstanding results at Glencoe/McGraw-Hill, our secondary school publisher, SRA/McGraw-Hill, our supplementary publisher, and CTB/McGraw-Hill, our testing division and a better than expected performance by the School Division all contributed to this record. Glencoe produced market-leading performances in math and social studies, scoring well with multi-media programs in both adoption states and open territories. SRA/McGraw-Hill and the School Division combined to take 34% of the California reading market in the second year of the adoption and led the market after two years with a 35% share. The School Division's social studies program also performed well, helping it to overcome a disappointing performance in math. In Higher Education, solid results with both the front and backlists combined to produce a 7.0% gain in revenue to $359.4 million. Revenue for the Professional Publishing Group declined by 4.8% to $429.5 million, reflecting the continuing weakness at CEC. Softness in the Asia-Pacific markets also held back International Publishing operations, although our Spanish-language programs in Mexico and Spain showed solid gains.
Source: Businesswire 1/26/99
Internet sales Gain at WH Smith
British retailer W.H. Smith Group on Wednesday reported a modest sales increase over Christmas and New Year, but saw orders surge at its newly-acquired Internet Bookshop. The Internet Bookshop, the online bookseller Smith bought last July for 8.8 million pounds ($14.54 million), saw sales jump by 70 percent to 1.7 million pounds since September 1 last year, with orders up 170 percent in December. The firm's shares have been swept along on a wave of Internet fever, sparked by investors scouring the UK stock market for Internet plays, which look cheap against U.S. cyber-stocks like rival online bookseller Amazon.com and search engine Yahoo!. Home electronics retailer Dixons, owner of Internet service provider Freeserve, has been the main beneficiary so far. It shares have surged some 70 percent since Freeserve's success first became apparent in November, boosting Dixons' market value by some three billion pounds. Analysts said there has been intense speculation about how Smith might expand its online business, including rumors it might do its own ``Freeserve.'' When Smith bought Helicon it said this marked another step along the way in developing its electronic commerce business and said it would reveal more about Internet plans in the spring.
Source: Reuters 1/27/99
EarthWeb Announces Online Publishing Deals with Seven Leading Book Publishers EarthWeb announced today that it has entered into agreements with seven leading Information Technology (IT) publishers to provide the complete text of their technical books on EarthWeb's ITKnowledge. The deals give EarthWeb licensing rights to over 3,000 technical books for its subscription-based online library of IT information. The ITKnowledge roster of publishers comprises many of the most respected companies in the technical publishing industry including: IDG Books Worldwide and its imprints, M&T Books and IDG Books; Macmillan Computer Publishing and its imprints, Hayden, Macmillan Technical, New Riders, Que, Sams, Waite Group Press and Ziff-Davis Press; The Coriolis Group and its Coriolis and Ventana imprints; Wordware Publishing; CRC Press and its Auerbach and St. Lucie Press imprints; 29th Street Press (formerly Duke Press); and ASP Publishing.
ITKnowledge (http://www.itknowledge.com) is EarthWeb's first subscription service and contains the largest online collection of technical books for IT professionals.
Source: PRNewswire 1/26/99
Primedia's 1998 Annual Sales Grow to $1.5Billion
Primedia reported annual sales rose to $1.53 billion, up 26.3%, and EBITDA, rose 15.6% to $323.1 million. According to company sources the company will strengthen our market positions as we accelerate organic growth through market penetration, international expansion and new products, particularly delivered via the ultimate targeted medium - the Internet." Some of PRIMEDIA's brands include Seventeen, HPC Apartment Guides, Horticulture, IntelliChoice, Telephony, Channel One Network and Weekly Reader. During the week there was some media speculation which referred to Primedia as a potential acquition target. The management group which sold Petersens have loads of cash and will apparently be looking to repeat their success.
Source: Businesswire 1/28/99
Houghton Mifflin Company Reports 1998 Fourth-Quarter and Full-Year Results Houghton Mifflin Company today reported results for the fourth quarter and full year 1998. Net sales in 1998 reached a record $861.7 million for the full year compared to $797.3 million in 1997, an increase of 8.1%. Income from operations was $40.8 million, or $1.40 per fully diluted share, compared to $42.7 million, or $1.48 per diluted share, in 1997. The 1998 results included $.07 per share of operating losses attributable to the Company's July 1998 acquisition of Computer Adaptive Technologies, Inc. and a $.02-per-share charge for the cost of the Company's unsuccessful bid for a portion of Simon & Schuster's publishing assets. Net income for 1998 was $63.6 million, or $2.19 per fully diluted share. This result included other earnings related to the Company's investment in INSO Corporation (INSO) totaling $28.4 million after tax, a $2.0 million after-tax loss on the disposition of certain long-term investments, and a $3.5 million charge for in-process research and development. Net income in 1997, including special items related to INSO totaling $7.2 million, was $49.8 million, or $1.73 per fully diluted share.
Source: Businesswire 1/28/99
EU Probes FT/Dow Jones/Knight Ridder 1996 deal The European Commission said on Friday it was probing a 1996 agreement between Financial Times Information Ltd, Dow Jones Information Publishing Inc and Knight Ridder Business Information, now called Dialog Corp Plc, to set up an electronic database for financial information. The European Union's competition watchdog said in a notice published in the bloc's Official Journal that the agreement was filed for regulatory clearance in June 1997. It added that it could fall under EU regulation 17 which bans anti-competitive agreements and abuse of a dominant position. The Commission called on interested parties to comment within a month. FT Information is controlled by Pearson Plc. Dialog was created in 1997 by the merger of M.A.I.D. Plc and Knight-Ridder Information Inc. The three financial news service providers agreed in September 1996 to cooperate to develop and maintain a new worldwide electronic database for historical business and financial information, the Commission said in the short notice.
Source: Businesswire 1/29/99
Mirror Group CEO is Out
As reported last week, disgruntled investors acted out their threats this week by requesting the resignation of chief executive David Montgomery. Institutional investors cited under-performance and “poor strategic decisions by its senior management” as reasons for the action. Chief among these were management’s decision to invest in the Independent newspaper and establish its Live TV subsidiary.
Source: Financial Times 1/29/99
The McGraw-Hill Companies Reports 15% Increase in 1998 Earnings
Internet sales Gain at WH Smith
EarthWeb Announces Online Publishing Deals with Seven Leading Book Publishers
Primedia's 1998 Annual Sales Grow to $1.5Billion
Houghton Mifflin Company Reports 1998 Fourth-Quarter and Full-Year Results
EU Probes FT/Dow Jones/Knight Ridder 1996 deal
Mirror Group CEO is Out
The McGraw-Hill Companies Reports 15% Increase in 1998 EarningsThe McGraw-Hill Companies today reported a 15.1% increase in diluted earnings per share to $3.35 for 1998 compared to $2.91 in 1997. Net income for the year grew to $333.1 million and revenue increased 5.5% to $3.7 billion. Excluding an extraordinary loss and other one-time items, diluted earnings per share were $3.37 and net income was $335.4 million.
Educational and Professional Publishing: Revenues in this segment increased 3.0% to $1.6 billion in 1998 and operating profit improved by 7.7% to $202.1 million. Excluding the write-off for CEC in 1998 and the facilities charge in 1997, operating profit increased 11.1% and operating margin improved to 13.5%. "Revenue in the seasonally slow fourth quarter increased 1.9% to $344.7 million and operating profits climbed by 26.0% to $22.4 million. Despite a lighter adoption schedule in the elementary school market in 1998 and challenging comparisons created by a 25.4% increase in revenue last year, our elementary-high school operations produced a 7.6% gain in revenue to $831.5 million. Outstanding results at Glencoe/McGraw-Hill, our secondary school publisher, SRA/McGraw-Hill, our supplementary publisher, and CTB/McGraw-Hill, our testing division and a better than expected performance by the School Division all contributed to this record. Glencoe produced market-leading performances in math and social studies, scoring well with multi-media programs in both adoption states and open territories. SRA/McGraw-Hill and the School Division combined to take 34% of the California reading market in the second year of the adoption and led the market after two years with a 35% share. The School Division's social studies program also performed well, helping it to overcome a disappointing performance in math. In Higher Education, solid results with both the front and backlists combined to produce a 7.0% gain in revenue to $359.4 million. Revenue for the Professional Publishing Group declined by 4.8% to $429.5 million, reflecting the continuing weakness at CEC. Softness in the Asia-Pacific markets also held back International Publishing operations, although our Spanish-language programs in Mexico and Spain showed solid gains.
Source: Businesswire 1/26/99
Internet sales Gain at WH Smith
British retailer W.H. Smith Group on Wednesday reported a modest sales increase over Christmas and New Year, but saw orders surge at its newly-acquired Internet Bookshop. The Internet Bookshop, the online bookseller Smith bought last July for 8.8 million pounds ($14.54 million), saw sales jump by 70 percent to 1.7 million pounds since September 1 last year, with orders up 170 percent in December. The firm's shares have been swept along on a wave of Internet fever, sparked by investors scouring the UK stock market for Internet plays, which look cheap against U.S. cyber-stocks like rival online bookseller Amazon.com and search engine Yahoo!. Home electronics retailer Dixons, owner of Internet service provider Freeserve, has been the main beneficiary so far. It shares have surged some 70 percent since Freeserve's success first became apparent in November, boosting Dixons' market value by some three billion pounds. Analysts said there has been intense speculation about how Smith might expand its online business, including rumors it might do its own ``Freeserve.'' When Smith bought Helicon it said this marked another step along the way in developing its electronic commerce business and said it would reveal more about Internet plans in the spring.
Source: Reuters 1/27/99
EarthWeb Announces Online Publishing Deals with Seven Leading Book Publishers EarthWeb announced today that it has entered into agreements with seven leading Information Technology (IT) publishers to provide the complete text of their technical books on EarthWeb's ITKnowledge. The deals give EarthWeb licensing rights to over 3,000 technical books for its subscription-based online library of IT information. The ITKnowledge roster of publishers comprises many of the most respected companies in the technical publishing industry including: IDG Books Worldwide and its imprints, M&T Books and IDG Books; Macmillan Computer Publishing and its imprints, Hayden, Macmillan Technical, New Riders, Que, Sams, Waite Group Press and Ziff-Davis Press; The Coriolis Group and its Coriolis and Ventana imprints; Wordware Publishing; CRC Press and its Auerbach and St. Lucie Press imprints; 29th Street Press (formerly Duke Press); and ASP Publishing.
ITKnowledge (http://www.itknowledge.com) is EarthWeb's first subscription service and contains the largest online collection of technical books for IT professionals.
Source: PRNewswire 1/26/99
Primedia's 1998 Annual Sales Grow to $1.5Billion
Primedia reported annual sales rose to $1.53 billion, up 26.3%, and EBITDA, rose 15.6% to $323.1 million. According to company sources the company will strengthen our market positions as we accelerate organic growth through market penetration, international expansion and new products, particularly delivered via the ultimate targeted medium - the Internet." Some of PRIMEDIA's brands include Seventeen, HPC Apartment Guides, Horticulture, IntelliChoice, Telephony, Channel One Network and Weekly Reader. During the week there was some media speculation which referred to Primedia as a potential acquition target. The management group which sold Petersens have loads of cash and will apparently be looking to repeat their success.
Source: Businesswire 1/28/99
Houghton Mifflin Company Reports 1998 Fourth-Quarter and Full-Year Results Houghton Mifflin Company today reported results for the fourth quarter and full year 1998. Net sales in 1998 reached a record $861.7 million for the full year compared to $797.3 million in 1997, an increase of 8.1%. Income from operations was $40.8 million, or $1.40 per fully diluted share, compared to $42.7 million, or $1.48 per diluted share, in 1997. The 1998 results included $.07 per share of operating losses attributable to the Company's July 1998 acquisition of Computer Adaptive Technologies, Inc. and a $.02-per-share charge for the cost of the Company's unsuccessful bid for a portion of Simon & Schuster's publishing assets. Net income for 1998 was $63.6 million, or $2.19 per fully diluted share. This result included other earnings related to the Company's investment in INSO Corporation (INSO) totaling $28.4 million after tax, a $2.0 million after-tax loss on the disposition of certain long-term investments, and a $3.5 million charge for in-process research and development. Net income in 1997, including special items related to INSO totaling $7.2 million, was $49.8 million, or $1.73 per fully diluted share.
Source: Businesswire 1/28/99
EU Probes FT/Dow Jones/Knight Ridder 1996 deal The European Commission said on Friday it was probing a 1996 agreement between Financial Times Information Ltd, Dow Jones Information Publishing Inc and Knight Ridder Business Information, now called Dialog Corp Plc, to set up an electronic database for financial information. The European Union's competition watchdog said in a notice published in the bloc's Official Journal that the agreement was filed for regulatory clearance in June 1997. It added that it could fall under EU regulation 17 which bans anti-competitive agreements and abuse of a dominant position. The Commission called on interested parties to comment within a month. FT Information is controlled by Pearson Plc. Dialog was created in 1997 by the merger of M.A.I.D. Plc and Knight-Ridder Information Inc. The three financial news service providers agreed in September 1996 to cooperate to develop and maintain a new worldwide electronic database for historical business and financial information, the Commission said in the short notice.
Source: Businesswire 1/29/99
Mirror Group CEO is Out
As reported last week, disgruntled investors acted out their threats this week by requesting the resignation of chief executive David Montgomery. Institutional investors cited under-performance and “poor strategic decisions by its senior management” as reasons for the action. Chief among these were management’s decision to invest in the Independent newspaper and establish its Live TV subsidiary.
Source: Financial Times 1/29/99
Wednesday, December 10, 1997
12/10/97: Reader's Digest, Reed Elsevier, Kluwer, Thomson
Summary
Shareholder Unrest Brewing At Reader's Digest
Dow Jones Teams Up With NBC: Companies Hope to Stem Losses Abroad With TV-Internet Partnership
Wolters Plans Acquisition Of Thomson Publications
Penguin Putnam Inc. Announces Publishing Partnership With DreamWorks SKG
Thomson Financial Publishing to Expand Electronic Commerce Initiatives
Harcourt General Announces Results For Fourth Quarter And Full Year
Reed Elsevier: Update on Trading and on Progress on Proposed Merger with Wolters Kluwer:
National Geographic Chief Quits: John Fahey Moves Up in Society as Reg Murphy Suddenly Moves Out
Wolters Kluwer Reed Elsevier
New York Times Says It Plans Acquisition In 1999
RECENT NEWS
Shareholder Unrest Brewing At Reader's Digest
(Book Publishing Report) A minority shareholder is going forward with its bid to place two candidates on the Reader's Digest board of directors, despite the fact that the company has politely refused its request. Making matters worse for Reader's Digest-which will hold what could be a fractious annual meeting this Friday (12th)-is the fact that shareholder Corporate Value Partners has chosen to conduct its efforts publicly. The shareholder discord is just the latest problem to beset Reader's Digest, which has been struggling to reverse an alarming drop in its financial performance caused by a steadily eroding customer base (BPR, Aug. 18). BPR has learned that Barbara Morgan, senior vice president and editor in chief of the company's Books and Home Entertainment Products division, is leaving the company. The division's operating income sank 37.5% to $201.1 million on revenues that fell 11.9% to $1.85 billion in fiscal 1997, ended June 30. Morgan is the latest in a series of executive departures that began with chief executive officer James Schadt's forced resignation in August. Since then, CFO Stephen Wilson, senior VP of strategic planning Glenda Burkhart, senior VP and general counsel Paul Soden and RD Europe president Martin Pearson have also left.
Dow Jones Teams Up With NBC: Companies Hope to Stem Losses Abroad With TV-Internet Partnership
After a year of talks, media giants Dow Jones & Co. and General Electric Co.'s NBC division announced today that they will form a global television and Internet partnership cementing the brands internationally and tempering losses both companies are experiencing in their overseas operations. The merger will consolidate the two companies' business-news channels in Europe and Asia -- cutting costs and expanding each side's distribution -- while also adding Dow Jones news, and perhaps interviews with its Wall Street Journal reporters, to CNBC's programming in the United States. Dow Jones lost $48 million in its television ventures last year, while NBC 's subsidiary CNBC lost $15 million in Asia. NBC will pay a licensing fee to Dow Jones but did not disclose how much. CNBC will now be known both domestically and internationally as "a service of NBC and Dow Jones. For Dow Jones, the alliance comes at a time when Kann is under intense pressure from the company's board to curtail money-losing operations. Revenue from this deal, as well as the cash from several recent deals to license the well-known market barometer Dow Jones industrial average as a vehicle for the trading of futures and options contracts, will enhance the company's bottom line. But Kann's larger problem, analysts said, is Dow Jones Markets, the real-time news and data service formerly known as Telerate, which is losing market share to competing services run by Reuters Holdings PLC and Bloomberg Financial Markets. Kann announced a controversial plan in January to spend $650 million to revive the ailing unit, which drew the ire of shareholders and certain members of the Bancroft family, which controls 70 percent of the voting shares of Dow Jones stock and has four of the 15 seats on the company's board of directors. After pressure from outsiders and a fresh look at the plan by Dow Jones's board, the company changed course and announced it was "exploring options" regarding Dow Jones Markets, including the sale of the unit. "It has got to be sold," said Michael Price, the influential money manager who holds 4.1 million shares of Dow Jones stock and has been pushing the company since January to sell the flagging unit. Still, one of the things Kann has been criticized for is not doing enough to leverage the Dow Jones franchise as a premiere provider of financial news. Today's deal will help give the company a worldwide television platform to showcase its stories. CNBC will have worldwide television rights to Dow Jones stories and plans to set up studios at the Wall Street Journal's headquarters in the World Financial Center in downtown Manhattan. For NBC , the move strengthens its CNBC subsidiary, which is accessible in 65 million households and is projecting a $100 million profit this year. On the Internet, the Web site run by MSNBC -- an existing NBC -Microsoft Corp. joint venture -- will provide highlights from the Wall Street Journal, flagged under the CNBC/Dow Jones logo. As part of today's deal, Dow Jones acquired a third of MSNBC Business Video, which delivers video clips from corporate speeches and conferences to clients' computers. Both NBC and Dow Jones acknowledged that fourth-quarter earnings may be pinched by restructuring costs related to today's announcement. December 10, 1997 Copyright (c) 1997 The Washington Post Received via NewsEDGE
Wolters Plans Acquisition Of Thomson Publications
AMSTERDAM -- Dutch publisher Wolters Kluwer NV said it agreed to acquire scientific and medical publisher Thomson Science from Thomson Corp. of Canada. Wolters Kluwer didn't provide financial details of the planned transaction. However, the company said it expects the deal to be completed around the end of the year. Wolters said a significant number of Thomson Science's medical publications fit well with those of Wolters' U.S. medical publisher Lippincott-Raven, while its general scientific publications complement those of Wolters Kluwer Academic Publishing. Wolters said the acquisition won't include the German medical and scientific publications of Thomson Science. Wolters Kluwer's core activities include the legal, medical, educational, and other scientific and professional fields. Its principal operations are in the U.S. and eight European countries including Spain, Italy, Germany and France. Copyright (c) 1997 Dow Jones and Company, Inc.
Penguin Putnam Inc. Announces Publishing Partnership With DreamWorks SKG
NEW YORK, Dec. 9 Penguin Putnam Inc. has signed a multi- year strategic license agreement with DreamWorks Consumer Products, it was announced today by Douglas Whiteman, Executive Vice President of Penguin Putnam. The deal grants Penguin Putnam publishing rights for at least the first five animated feature films for DreamWorks Pictures, as well as the option to propose publishing programs for other DreamWorks properties, including live action motion pictures, animated and live action TV programs and direct-to-video films. Penguin Putnam's rights encompass most book formats with a suggested retail price of $4.00 and above. Penguin Putnam is currently working on more than two dozen titles in support of the 1997-1998 motion pictures set for release from DreamWorks Pictures. The first four books shipped in early November and are based on the film Amistad, directed by Steven Spielberg. Penguin Putnam is also developing a range of titles and formats for Small Soldiers (Summer 1998). Directed by Joe Dante (Gremlins, Innerspace) and with special effects from Stan Winston Studio and Industrial Light & Magic (The Lost World: Jurassic Park), the film tells the story of a small town that is overtaken by artificially intelligent toys. Grosset & Dunlap plans six titles, including a movie storybook and a top secret dossier, all capturing the innovative look of the film. In support of DreamWorks' first animated film The Prince of Egypt (Holiday 1998), Penguin Putnam is developing titles in at least a dozen formats, with age-appropriate content for both adults and children, and honoring the ground-breaking animation style of the film. SOURCE Penguin Putnam Inc via Businesswire
Thomson Financial Publishing to Expand Electronic Commerce Initiatives
Thomson Financial Services announced today the acquisition of The EDI Group, Ltd. by its Thomson Financial Publishing unit. Terms of the agreement were not disclosed. The EDI Group is a professional services organization specializing in providing the highest quality research, publication and education services to companies participating in the EDI and Electronic Commerce marketplace. The EDI Group also offers public and private courses in EDI, EC and financial EDI/EFT. In addition, The EDI Group publishes quarterly a professional journal; EDI FORUM: The Journal of Electronic Commerce. Source Businesswire
Harcourt General Announces Results For Fourth Quarter And Full Year
Harcourt General, Inc. (NYSE:H) today reported that its Harcourt Brace publishing businesses achieved strong year-over-year gains in the fourth quarter of fiscal 1997, resulting in a record full-year performance by the Company before non-recurring charges and amortization associated with the acquisition of National Education Corporation (NEC). For the full year, Harcourt General reported that revenues rose 12.2 percent to $3.69 billion from $3.29 billion in 1996. Before NEC-related amortization of goodwill and acquired intangibles and non-recurring charges, operating earnings for the year were $375.7 million, a 9.0 percent increase from $344.7 million in 1996. After $104.1 million in NEC-related amortization of goodwill and acquired intangible assets and $277.2 million in non-recurring charges, the Company had an operating loss in 1997 of $5.7 million. The Company reported a net loss of $115.1 million, or $1.64 per share, for the full year, compared to net income of $190.9 million, or $2.62 per share in 1996. Revenues in the Harcourt Brace publishing operations increased 12.8 percent in the fourth quarter to $398.0 million, while operating earnings were up 22.3 percent to $97.0 million. For the full year, Harcourt Brace publishing revenues increased 14.5 percent to $1.25 billion, with operating earnings before non-recurring charges rising 13.3 percent to $223.1 million.
Reed Elsevier: Update on Trading and on Progress on Proposed Merger with Wolters Kluwer: Reed Elsevier today issues a brief status report on the progress of the proposed merger of Reed Elsevier with Wolters Kluwer and, in line with the practice introduced last year, an update on recent trading and some other material issues. Proposed Merger with Wolters Kluwer: "On 13 October 1997, the Boards of Reed International P.L.C., Elsevier NV and Wolters Kluwer NV announced that they had agreed in principle to propose to their respective shareholders a merger of their businesses. Progress continues to be made in developing the detailed merger proposals. The major steps implemented so far have included relevant employee consultation processes in the Netherlands, as well as the filing of necessary information with the competition authorities in various jurisdictions. "It is expected that, subject to receiving certain regulatory clearances, a circular to the shareholders of Reed, Elsevier and Wolters Kluwer, setting out details of the proposed merger will be issued on 27 March 1998 together with the respective 1997 annual reports. IPC Magazines: "On 27 October 1997, Reed Elsevier announced the possible divestment of IPC Magazines, its UK consumer magazines business. Review of the available options is continuing and if it is decided to pursue such a divestment, it is intended that any transaction would be concluded early in 1998. Update on Reed Elsevier’s Trading: "In September we completed the $447 million acquisition of the Chilton Business Group, a major US business to business publisher. Also, in October, we agreed a merger between Utell, our hotel reservation and representation business, and the US company, Anasazi Inc., which is the leading supplier of technology solutions to the hotel and hospitality market. "Reed Elsevier’s 1997 preliminary results will contain a number of exceptional items, the most significant of which will be substantial provisions in respect of the Reed Travel Group. Since the announcement, on 26 September 1997, of irregularities in circulation claims made by the Reed Travel Group, considerable progress has been made in determining the extent of the misstatements and in developing recompense plans for advertisers in the affected publications. Revised sales and marketing practices have already been introduced and circulation claims are now being rigorously controlled. "It is not possible at this stage in the process to quantify either the full financial effect of the recompense plans or the impact on the future profitability of the Reed Travel Group and the related value of its intangible assets. The exceptional charges will be in relation to the recompense plans, together with a non-cash write-down of intangible asset values. Source: Reed Elsevier
National Geographic Chief Quits: John Fahey Moves Up in Society as Reg Murphy Suddenly Moves Out
The National Geographic Society's chief executive resigned yesterday, only 18 months after taking the top job at the venerable Washington educational and publishing organization. Reg Murphy said he had been planning the move all along and dismissed any suggestions of dissension in his departure. He had been the society's No. 2 executive since 1993. During his tenure, Murphy, 63, a former newspaper publisher, aggressively cut costs and steered the nonprofit society toward profit-making ventures, such as producing dramatic TV movies and starting a chain of National Geographic stores. He also launched new foreign-language editions of the society's famed yellow-bordered magazine in one of the biggest expansion pushes in the publication's 109-year history. The strategic changes made Murphy a controversial figure within the society, a genteel, tradition-bound outfit that has long projected a semi-academic air. Murphy's successor, appointed by the society's board yesterday, is John Fahey, who joined National Geographic just 20 months ago from Time-Life, the direct-marketing arm of Time Warner . Fahey, 45, was recruited by Murphy from Time-Life in Alexandria to run National Geographic Ventures, the for-profit subsidiary Murphy started in 1995. The management changes represent a swift transition at an institution not known for moving quickly. They underscore the ascendancy of executives who've come from outside the organization and have a keener eye on the bottom line. Fahey takes over at a time when the society is in relatively strong shape. Circulation of its flagship magazine, which lost readers throughout much of the 1980s, has stabilized at about 9 million subscribers, who receive the magazine by becoming dues-paying "members" of the society. Its major growth area is its television operations. National Geographic Television produces documentaries and nature programs appearing on NBC and the TBS and Disney Channel cable networks. It has also moved into making dramatic movies for theatrical and broadcast distribution. Its first dramatic offering, "Forbidden Territory: Stanley's Search for Livingstone," was broadcast on ABC Sunday. Copyright (c) 1997 The Washington Post Received via NewsEDGE
Wolters Kluwer Reed Elsevier
The European Union Commission Friday opened a detailed four-month inquiry into the planned merger of Anglo-Dutch publisher Reed Elsevier (N.ELS, U.REE) and Dutch publisher Wolters Kluwer NV (N.WOK), an E.U. source said. Via Newsedge
New York Times Says It Plans Acquisition In 1999
The New York Times Co. said Thursday that it was ``counting on an acquisition to provide considerable future growth'' sometime in 1999. The company also predicted increases in revenues and operating profits, and its stock rose to a 52-week high. ``The next step in our external development plan is to bring an investment banker on board'' to examine potential properties, the company's president and chief executive, Russell T. Lewis, said at a New York conference of investors, sponsored by Paine Webber. But Lewis added that he did not ``anticipate any significant developments in this area until 1999.'' The Times also disclosed that it planned a new section of technology news called Circuits in February and that it would publish seven to nine special one-time sections in 1998. In addition, the company made its earnings predictions, reporting that operating profit for the newspaper group, its largest division, was expected to rise 35 percent from last year to between $430 million and $440 million. The Times also said that earnings before interest, taxes, depreciation and amortization were expected to rise 30 percent, to between $590 million and $600 million. The Times Co., which had revenues of $2.6 billion in 1996, publishes The Boston Globe and 21 regional newspapers in addition to The New York Times, as well as three magazines. The company also operates television and radio stations
Copyright (c) 1997 The New York Times Co. Received via NewsEDGE from Desktop Data, Inc.
Shareholder Unrest Brewing At Reader's Digest
Dow Jones Teams Up With NBC: Companies Hope to Stem Losses Abroad With TV-Internet Partnership
Wolters Plans Acquisition Of Thomson Publications
Penguin Putnam Inc. Announces Publishing Partnership With DreamWorks SKG
Thomson Financial Publishing to Expand Electronic Commerce Initiatives
Harcourt General Announces Results For Fourth Quarter And Full Year
Reed Elsevier: Update on Trading and on Progress on Proposed Merger with Wolters Kluwer:
National Geographic Chief Quits: John Fahey Moves Up in Society as Reg Murphy Suddenly Moves Out
Wolters Kluwer Reed Elsevier
New York Times Says It Plans Acquisition In 1999
RECENT NEWS
Shareholder Unrest Brewing At Reader's Digest
(Book Publishing Report) A minority shareholder is going forward with its bid to place two candidates on the Reader's Digest board of directors, despite the fact that the company has politely refused its request. Making matters worse for Reader's Digest-which will hold what could be a fractious annual meeting this Friday (12th)-is the fact that shareholder Corporate Value Partners has chosen to conduct its efforts publicly. The shareholder discord is just the latest problem to beset Reader's Digest, which has been struggling to reverse an alarming drop in its financial performance caused by a steadily eroding customer base (BPR, Aug. 18). BPR has learned that Barbara Morgan, senior vice president and editor in chief of the company's Books and Home Entertainment Products division, is leaving the company. The division's operating income sank 37.5% to $201.1 million on revenues that fell 11.9% to $1.85 billion in fiscal 1997, ended June 30. Morgan is the latest in a series of executive departures that began with chief executive officer James Schadt's forced resignation in August. Since then, CFO Stephen Wilson, senior VP of strategic planning Glenda Burkhart, senior VP and general counsel Paul Soden and RD Europe president Martin Pearson have also left.
Dow Jones Teams Up With NBC: Companies Hope to Stem Losses Abroad With TV-Internet Partnership
After a year of talks, media giants Dow Jones & Co. and General Electric Co.'s NBC division announced today that they will form a global television and Internet partnership cementing the brands internationally and tempering losses both companies are experiencing in their overseas operations. The merger will consolidate the two companies' business-news channels in Europe and Asia -- cutting costs and expanding each side's distribution -- while also adding Dow Jones news, and perhaps interviews with its Wall Street Journal reporters, to CNBC's programming in the United States. Dow Jones lost $48 million in its television ventures last year, while NBC 's subsidiary CNBC lost $15 million in Asia. NBC will pay a licensing fee to Dow Jones but did not disclose how much. CNBC will now be known both domestically and internationally as "a service of NBC and Dow Jones. For Dow Jones, the alliance comes at a time when Kann is under intense pressure from the company's board to curtail money-losing operations. Revenue from this deal, as well as the cash from several recent deals to license the well-known market barometer Dow Jones industrial average as a vehicle for the trading of futures and options contracts, will enhance the company's bottom line. But Kann's larger problem, analysts said, is Dow Jones Markets, the real-time news and data service formerly known as Telerate, which is losing market share to competing services run by Reuters Holdings PLC and Bloomberg Financial Markets. Kann announced a controversial plan in January to spend $650 million to revive the ailing unit, which drew the ire of shareholders and certain members of the Bancroft family, which controls 70 percent of the voting shares of Dow Jones stock and has four of the 15 seats on the company's board of directors. After pressure from outsiders and a fresh look at the plan by Dow Jones's board, the company changed course and announced it was "exploring options" regarding Dow Jones Markets, including the sale of the unit. "It has got to be sold," said Michael Price, the influential money manager who holds 4.1 million shares of Dow Jones stock and has been pushing the company since January to sell the flagging unit. Still, one of the things Kann has been criticized for is not doing enough to leverage the Dow Jones franchise as a premiere provider of financial news. Today's deal will help give the company a worldwide television platform to showcase its stories. CNBC will have worldwide television rights to Dow Jones stories and plans to set up studios at the Wall Street Journal's headquarters in the World Financial Center in downtown Manhattan. For NBC , the move strengthens its CNBC subsidiary, which is accessible in 65 million households and is projecting a $100 million profit this year. On the Internet, the Web site run by MSNBC -- an existing NBC -Microsoft Corp. joint venture -- will provide highlights from the Wall Street Journal, flagged under the CNBC/Dow Jones logo. As part of today's deal, Dow Jones acquired a third of MSNBC Business Video, which delivers video clips from corporate speeches and conferences to clients' computers. Both NBC and Dow Jones acknowledged that fourth-quarter earnings may be pinched by restructuring costs related to today's announcement. December 10, 1997 Copyright (c) 1997 The Washington Post Received via NewsEDGE
Wolters Plans Acquisition Of Thomson Publications
AMSTERDAM -- Dutch publisher Wolters Kluwer NV said it agreed to acquire scientific and medical publisher Thomson Science from Thomson Corp. of Canada. Wolters Kluwer didn't provide financial details of the planned transaction. However, the company said it expects the deal to be completed around the end of the year. Wolters said a significant number of Thomson Science's medical publications fit well with those of Wolters' U.S. medical publisher Lippincott-Raven, while its general scientific publications complement those of Wolters Kluwer Academic Publishing. Wolters said the acquisition won't include the German medical and scientific publications of Thomson Science. Wolters Kluwer's core activities include the legal, medical, educational, and other scientific and professional fields. Its principal operations are in the U.S. and eight European countries including Spain, Italy, Germany and France. Copyright (c) 1997 Dow Jones and Company, Inc.
Penguin Putnam Inc. Announces Publishing Partnership With DreamWorks SKG
NEW YORK, Dec. 9 Penguin Putnam Inc. has signed a multi- year strategic license agreement with DreamWorks Consumer Products, it was announced today by Douglas Whiteman, Executive Vice President of Penguin Putnam. The deal grants Penguin Putnam publishing rights for at least the first five animated feature films for DreamWorks Pictures, as well as the option to propose publishing programs for other DreamWorks properties, including live action motion pictures, animated and live action TV programs and direct-to-video films. Penguin Putnam's rights encompass most book formats with a suggested retail price of $4.00 and above. Penguin Putnam is currently working on more than two dozen titles in support of the 1997-1998 motion pictures set for release from DreamWorks Pictures. The first four books shipped in early November and are based on the film Amistad, directed by Steven Spielberg. Penguin Putnam is also developing a range of titles and formats for Small Soldiers (Summer 1998). Directed by Joe Dante (Gremlins, Innerspace) and with special effects from Stan Winston Studio and Industrial Light & Magic (The Lost World: Jurassic Park), the film tells the story of a small town that is overtaken by artificially intelligent toys. Grosset & Dunlap plans six titles, including a movie storybook and a top secret dossier, all capturing the innovative look of the film. In support of DreamWorks' first animated film The Prince of Egypt (Holiday 1998), Penguin Putnam is developing titles in at least a dozen formats, with age-appropriate content for both adults and children, and honoring the ground-breaking animation style of the film. SOURCE Penguin Putnam Inc via Businesswire
Thomson Financial Publishing to Expand Electronic Commerce Initiatives
Thomson Financial Services announced today the acquisition of The EDI Group, Ltd. by its Thomson Financial Publishing unit. Terms of the agreement were not disclosed. The EDI Group is a professional services organization specializing in providing the highest quality research, publication and education services to companies participating in the EDI and Electronic Commerce marketplace. The EDI Group also offers public and private courses in EDI, EC and financial EDI/EFT. In addition, The EDI Group publishes quarterly a professional journal; EDI FORUM: The Journal of Electronic Commerce. Source Businesswire
Harcourt General Announces Results For Fourth Quarter And Full Year
Harcourt General, Inc. (NYSE:H) today reported that its Harcourt Brace publishing businesses achieved strong year-over-year gains in the fourth quarter of fiscal 1997, resulting in a record full-year performance by the Company before non-recurring charges and amortization associated with the acquisition of National Education Corporation (NEC). For the full year, Harcourt General reported that revenues rose 12.2 percent to $3.69 billion from $3.29 billion in 1996. Before NEC-related amortization of goodwill and acquired intangibles and non-recurring charges, operating earnings for the year were $375.7 million, a 9.0 percent increase from $344.7 million in 1996. After $104.1 million in NEC-related amortization of goodwill and acquired intangible assets and $277.2 million in non-recurring charges, the Company had an operating loss in 1997 of $5.7 million. The Company reported a net loss of $115.1 million, or $1.64 per share, for the full year, compared to net income of $190.9 million, or $2.62 per share in 1996. Revenues in the Harcourt Brace publishing operations increased 12.8 percent in the fourth quarter to $398.0 million, while operating earnings were up 22.3 percent to $97.0 million. For the full year, Harcourt Brace publishing revenues increased 14.5 percent to $1.25 billion, with operating earnings before non-recurring charges rising 13.3 percent to $223.1 million.
Reed Elsevier: Update on Trading and on Progress on Proposed Merger with Wolters Kluwer: Reed Elsevier today issues a brief status report on the progress of the proposed merger of Reed Elsevier with Wolters Kluwer and, in line with the practice introduced last year, an update on recent trading and some other material issues. Proposed Merger with Wolters Kluwer: "On 13 October 1997, the Boards of Reed International P.L.C., Elsevier NV and Wolters Kluwer NV announced that they had agreed in principle to propose to their respective shareholders a merger of their businesses. Progress continues to be made in developing the detailed merger proposals. The major steps implemented so far have included relevant employee consultation processes in the Netherlands, as well as the filing of necessary information with the competition authorities in various jurisdictions. "It is expected that, subject to receiving certain regulatory clearances, a circular to the shareholders of Reed, Elsevier and Wolters Kluwer, setting out details of the proposed merger will be issued on 27 March 1998 together with the respective 1997 annual reports. IPC Magazines: "On 27 October 1997, Reed Elsevier announced the possible divestment of IPC Magazines, its UK consumer magazines business. Review of the available options is continuing and if it is decided to pursue such a divestment, it is intended that any transaction would be concluded early in 1998. Update on Reed Elsevier’s Trading: "In September we completed the $447 million acquisition of the Chilton Business Group, a major US business to business publisher. Also, in October, we agreed a merger between Utell, our hotel reservation and representation business, and the US company, Anasazi Inc., which is the leading supplier of technology solutions to the hotel and hospitality market. "Reed Elsevier’s 1997 preliminary results will contain a number of exceptional items, the most significant of which will be substantial provisions in respect of the Reed Travel Group. Since the announcement, on 26 September 1997, of irregularities in circulation claims made by the Reed Travel Group, considerable progress has been made in determining the extent of the misstatements and in developing recompense plans for advertisers in the affected publications. Revised sales and marketing practices have already been introduced and circulation claims are now being rigorously controlled. "It is not possible at this stage in the process to quantify either the full financial effect of the recompense plans or the impact on the future profitability of the Reed Travel Group and the related value of its intangible assets. The exceptional charges will be in relation to the recompense plans, together with a non-cash write-down of intangible asset values. Source: Reed Elsevier
National Geographic Chief Quits: John Fahey Moves Up in Society as Reg Murphy Suddenly Moves Out
The National Geographic Society's chief executive resigned yesterday, only 18 months after taking the top job at the venerable Washington educational and publishing organization. Reg Murphy said he had been planning the move all along and dismissed any suggestions of dissension in his departure. He had been the society's No. 2 executive since 1993. During his tenure, Murphy, 63, a former newspaper publisher, aggressively cut costs and steered the nonprofit society toward profit-making ventures, such as producing dramatic TV movies and starting a chain of National Geographic stores. He also launched new foreign-language editions of the society's famed yellow-bordered magazine in one of the biggest expansion pushes in the publication's 109-year history. The strategic changes made Murphy a controversial figure within the society, a genteel, tradition-bound outfit that has long projected a semi-academic air. Murphy's successor, appointed by the society's board yesterday, is John Fahey, who joined National Geographic just 20 months ago from Time-Life, the direct-marketing arm of Time Warner . Fahey, 45, was recruited by Murphy from Time-Life in Alexandria to run National Geographic Ventures, the for-profit subsidiary Murphy started in 1995. The management changes represent a swift transition at an institution not known for moving quickly. They underscore the ascendancy of executives who've come from outside the organization and have a keener eye on the bottom line. Fahey takes over at a time when the society is in relatively strong shape. Circulation of its flagship magazine, which lost readers throughout much of the 1980s, has stabilized at about 9 million subscribers, who receive the magazine by becoming dues-paying "members" of the society. Its major growth area is its television operations. National Geographic Television produces documentaries and nature programs appearing on NBC and the TBS and Disney Channel cable networks. It has also moved into making dramatic movies for theatrical and broadcast distribution. Its first dramatic offering, "Forbidden Territory: Stanley's Search for Livingstone," was broadcast on ABC Sunday. Copyright (c) 1997 The Washington Post Received via NewsEDGE
Wolters Kluwer Reed Elsevier
The European Union Commission Friday opened a detailed four-month inquiry into the planned merger of Anglo-Dutch publisher Reed Elsevier (N.ELS, U.REE) and Dutch publisher Wolters Kluwer NV (N.WOK), an E.U. source said. Via Newsedge
New York Times Says It Plans Acquisition In 1999
The New York Times Co. said Thursday that it was ``counting on an acquisition to provide considerable future growth'' sometime in 1999. The company also predicted increases in revenues and operating profits, and its stock rose to a 52-week high. ``The next step in our external development plan is to bring an investment banker on board'' to examine potential properties, the company's president and chief executive, Russell T. Lewis, said at a New York conference of investors, sponsored by Paine Webber. But Lewis added that he did not ``anticipate any significant developments in this area until 1999.'' The Times also disclosed that it planned a new section of technology news called Circuits in February and that it would publish seven to nine special one-time sections in 1998. In addition, the company made its earnings predictions, reporting that operating profit for the newspaper group, its largest division, was expected to rise 35 percent from last year to between $430 million and $440 million. The Times also said that earnings before interest, taxes, depreciation and amortization were expected to rise 30 percent, to between $590 million and $600 million. The Times Co., which had revenues of $2.6 billion in 1996, publishes The Boston Globe and 21 regional newspapers in addition to The New York Times, as well as three magazines. The company also operates television and radio stations
Copyright (c) 1997 The New York Times Co. Received via NewsEDGE from Desktop Data, Inc.
Friday, November 21, 1997
11/21/97: Primedia, McClatchy, John Wiley, Dow Jones
Summary:
Mcclatchy Purchases Cowles Media Company
Primedia (Kiii) Acquires Publisher
Wiley And Dow Jones Form Publishing Alliance
Dow Jones To Ax 400 Workers
Don’t You Wish Your Last Name Were Murdoch?
Macromedia Purchases New Jersey Newspapers
Dow Jones Board Votes To Sell Markets Unit
Springer Chairman Plans To Step Down
Dow Jones To Acquire Rest Of IDD Enterprises L.P
NOT SO RECENT NEWS
MCCLATCHY PURCHASES COWLES MEDIA COMPANY (Inadvertently left out last week)
McClatchy Newspapers, Inc. (NYSE: MNI) and Cowles Media Company (CMC), announced today an agreement for McClatchy to acquire Cowles, publisher of the Star Tribune in the Twin Cities of Minneapolis/St. Paul, in a transaction valued at $1.4 billion, including the assumption of approximately $90 million in existing Cowles debt. The merger creates the eighth-largest newspaper company in the nation based on daily and Sunday circulation.
The Star Tribune is the leading newspaper in Minnesota with circulation of 387,000 daily and 673,000 on Sunday. It ranks as the 16th largest daily and the 12th largest Sunday newspaper in the country. The Star Tribune's daily circulation is nearly twice that of its primary competitor in the Twin Cities market, the 15th largest in the country. On Sunday, its circulation is two and one half times larger than its competitor and its penetration is the highest among two-paper markets in the United States.
In addition to the Star Tribune, Cowles operates three other business units which McClatchy expects to sell as soon as possible, using the proceeds to reduce debt. The other business units are: Cowles Business Media, Inc., a publisher of specialized business magazines and information services; Cowles Enthusiast Media, Inc., a publisher of 27 special-interest consumer magazines and related books and products; and Cowles Creative Publishing, Inc., a specialty publisher, distributor and direct marketer of books, videos and interactive media for the home arts, home improvement and outdoor markets.
McClatchy Newspapers, Inc., headquartered in Sacramento, California, currently publishes 10 daily and 13 non-daily newspapers located in western coastal states and North and South Carolina. The company reported 1996 revenues of $624 million and had daily circulation of 972,600 and Sunday circulation of 1,175,100. McClatchy's newspapers include, among others, The Sacramento Bee, The News and Observer (Raleigh, NC), The Fresno (CA) Bee, The News Tribune (Tacoma, WA) and the Anchorage Daily News. McClatchy also owns and operates other media-related businesses, including Nando.net, a national online publishing operation and The Newspaper Network, a national newspaper marketing company.
PRNewswire
RECENT NEWS
PRIMEDIA (KIII) ACQUIRES PUBLISHER
Primedia Inc., formerly K-III Communications said that its technical and trade division, Interec Publishing, has acquired Cardinal Business Media, whose magazines include Mix, which covers the professional recording industry; Electronic Musician, which covers computer-generated music production; and Recording Industry Sourcebook, a music industry directory. Also included in the deal are Cardinal's Club Industry News and its related trade shows for owners and operators of commercial health and fitness facilities. Excluding the latest acquisitions, Overland Park, KS-based Interec publishes 17 entertainment and business communications titles including Pool and Spa News, Broadcast Engineering, Millimeter, Video Systems and Telephony. Interec also puts on trade shows. In total, Interec, one of the largest trade publishers in the U.S., publishes 72 magazines, supplements, newsletters and show dailies throughout the world.
PRNewswire
WILEY AND DOW JONES FORM PUBLISHING ALLIANCE
Bonnie Lieberman, Senior Vice President and General Manager of the College Division of John Wiley & Sons, Inc. today announced an agreement with Dow Jones Interactive Publishing, a division of Dow Jones & Company, to develop the Wiley Business Extra program, featuring content from Dow Jones and The Wall Street Journal Interactive Edition, as part of Wiley's print and online college-level business textbook offerings. The Wiley Business Extra program is being created to enhance the student learning experience and offer professors a new level of support resources to strengthen the business curriculum. "We're very excited to be working with Dow Jones to further our long-standing strategic objective to help students to learn and teachers to teach. The Wiley Business Extra program does this by offering students greater insight into their studies through access to Dow Jones publications and articles, including The Wall Street Journal Interactive Edition, and by providing pedagogical tools to help them understand how to use this wealth of information," said Ms. Lieberman.
Wiley Business Extra will deliver the full-text of a selected number of Dow Jones stories, focusing on the topic, industry, or special area of interest relevant to the Wiley textbooks. Dow Jones will scan The Wall Street Journal Interactive Edition and other Dow Jones newswires for stories that match a profile established for the Wiley texts. Stories matching the profile will then be posted on the Business Extra electronic news folder hosted at Wiley's Web site, http://www.wiley.com, along with discussion questions for classroom assignments. Divided into sub-sections, the folder will contain a separate area for each text associated with the program. Wiley will publish a paperback book called The On-Line Business Survival Guide that shows students how to use The Wall Street Journal Interactive Edition, research business problems on the Web, and use the news folder. The customized guide will be available for purchase as a stand-alone or as a supplement to nine Wiley finance accounting, management, and information management textbooks.
(John Wiley)
DOW JONES TO AX 400 WORKERS
Serious Losses at Financial Info Unit As many as 400 workers will be cut from the 4,000-strong staff of Dow Jones Markets, the financial information division of Dow Jones & Co., previously known as Telerate. Reports issued today indicated that Dow Jones & Co., publisher of the Wall Street Journal, would also be announcing its first annual loss since it went public in 1963. That loss is predicted to be as high as $600 million. Dow Jones Market delivers breaking business news and financial information to investors and financial analysts through a proprietary desk terminal network. Reuters and Bloomberg provide competing services. Wall Street analysts had previously speculated that Dow Jones would sell the troubled financial information unit. Today the publishing company said it was reviewing the struggling unit's operations and studying alternative strategies. (See Below)
WSJ
DON’T YOU WISH YOUR LAST NAME WERE MURDOCH?
News America Publishing Group has announced the formation of News America Digital Publishing. The new division will consolidate the Group’s electronic publishing operations, including the TV Guide Entertainment Network (TVGEN); Fox News On-line; Fox Sports On-line; News Internet Services, an internet solutions provider; Kesmai, a multi-player games company; and the Advanced Media Group which focuses on business development and strategic planning. The announcement was made today by Anthea Disney, Chairman and Chief Executive Officer of News America Publishing Group, a division of News Corporation. James Murdoch, formerly News Corporation Vice-President for New Media, has been named President of News America Digital Publishing, reporting to Disney.
(News Corp)
MACROMEDIA PURCHASES NEW JERSEY NEWSPAPERS
Macromedia Inc., parent company of The Record, is purchasing the daily North Jersey Herald & News and 11 weekly newspapers that serve parts of five New Jersey counties. Jonathan Markey, president of the Hackensack-based Record, said Thursday that the Herald & News and the group of weeklies would continue to operate independently, although some administrative functions of the two daily papers may be combined in the future. "We plan to continue to operate the newspaper as the Herald & News, hopefully forever and certainly for as long as it works as expected and continues to provide value," Markey said.
In August, the media giant Gannett Co. announced that it would purchase the Asbury Park Press and the Home News & Tribune. All the papers being purchased by Macromedia are part of North Jersey Newspapers Co., a subsidiary of William Dean Singleton's Denver-based Media News Group. Ten other weeklies operated by North Jersey Newspapers Co. in Union and Warren counties will be kept by Media News. Markey would not disclose the price of the purchase. A newspaper industry analyst, however, estimated the price at $40 million to $50 million, although the total may be lower because the deal does not include real estate or the Herald & News' out-of-date presses.
John Morton, president of a Maryland consulting firm that analyzes media companies, said it is no surprise that Singleton was willing to part with the Herald & News. Singleton's sale of North Jersey Newspapers comes just weeks after Garden State Newspapers, another of his companies, announced that it would purchase the Press-Telegram of Long Beach, Calif., from Knight-Ridder Inc. "He's trying to `cluster' his papers, and if this is the last one in northern New Jersey, I suspect it's something he was planning to sell for some time," Morton said. Morton said that if the Herald & News were the only paper in its market, it might fetch as much as $1,400 per reader, or roughly $75 million. Because the North Jersey market is a competitive one, however, the purchase price most likely is considerably smaller.
Received via NewsEDGE from Desktop Data, Inc.: 11/21/97 03:37:2
DOW JONES BOARD VOTES TO SELL MARKETS UNIT
Dow Jones & Co.'s (DJ) board voted Thursday to put its Dow Jones Markets unit up for sale, The New York Times reported Friday, citing a person close to Dow Jones. On Wednesday, the company said Dow Jones Markets will focus on competitive strengths in content and its workstation product line, while continuing to examine all alternatives. The company also said it will cut the unit's staff by 200 to 300 by early 1998, while scaling back the investment program for Dow Jones Markets. Dow Jones added that it plans a "sizable" fourth-quarter charge, reflecting a write-down of goodwill, severance and other costs. According to the Times, the person close to Dow Jones said an analysis of Dow Jones Markets is expected to be prepared and completed in about three weeks and will then be available to prospective buyers. The Times said possible buyers include Bloomberg LP (X.BBG); Reuters Holdings PLC (RTRSY); Thomson Corp. (T.TOC); and Welsh, Carson, Anderson & Stowe, the investment company that owns Bridge News.
Received via NewsEDGE from Desktop Data, Inc.: 11/21/97 02:28:35
SPRINGER CHAIRMAN PLANS TO STEP DOWN
Axel Springer Verlag AG Chairman Juergen Richter will step down from his position at the end of the year, the company said. The German media group said that "after events of the last few weeks and publicized disparagements against (Richter), continuation of his contract cannot occur." Mr. Richter will continue performing all functions of chairman until Dec. 31, Springer said. In recent weeks, various German newspapers have speculated that Mr. Richter would be asked to step down, due to disagreements over his management style. Springer didn't say who would replace Mr. Richter, and company officials weren't immediately available to comment.
Axel Springer Verlag AG is a major German publishing and broadcasting group. Its principal operations are in newspapers, including the country's top-circulation tabloid "Bild" and daily newspaper "Die Welt." Springer also has magazine and television operations.
Copyright (c) 1997 Dow Jones and Company, Inc.
DOW JONES TO ACQUIRE REST OF IDD ENTERPRISES L.P.
Dow Jones & Co. said it plans to acquire the roughly 30% it doesn't already own of IDD Enterprises L.P. and sell parts of the financial-publishing, software and on-line services concern. Terms weren't disclosed. Dow Jones said it also plans to restructure IDD as part of a continuing program to shed noncore businesses. Under the restructuring plan, Dow Jones said it sold IDD's publishing operations, including magazines Investment Dealer's Digest and Mergers & Acquisitions Journal, to Securities Data Publishing, a unit of Thomson Corp. Dow Jones said it agreed to sell IDD's retail investment-services operations to a management group led by Leonard W. Hirschfeld, currently senior vice president with IDD. Mr. Hirschfeld will leave IDD to head the new business. The major remaining IDD asset to be kept by Dow Jones is Tradeline, a market information database used by investment banks and financial-services and information companies. In addition to IDD, Dow Jones publishes The Wall Street Journal, The Wall Street Journal Interactive Edition, Barron's magazine, electronic business information services including Dow Jones Markets and the Dow Jones Newswires, and the Ottaway group of community newspapers. Dow Jones also produces business television programming.
Copyright (c) 1997 Dow Jones and Company, Inc.
Mcclatchy Purchases Cowles Media Company
Primedia (Kiii) Acquires Publisher
Wiley And Dow Jones Form Publishing Alliance
Dow Jones To Ax 400 Workers
Don’t You Wish Your Last Name Were Murdoch?
Macromedia Purchases New Jersey Newspapers
Dow Jones Board Votes To Sell Markets Unit
Springer Chairman Plans To Step Down
Dow Jones To Acquire Rest Of IDD Enterprises L.P
NOT SO RECENT NEWS
MCCLATCHY PURCHASES COWLES MEDIA COMPANY (Inadvertently left out last week)
McClatchy Newspapers, Inc. (NYSE: MNI) and Cowles Media Company (CMC), announced today an agreement for McClatchy to acquire Cowles, publisher of the Star Tribune in the Twin Cities of Minneapolis/St. Paul, in a transaction valued at $1.4 billion, including the assumption of approximately $90 million in existing Cowles debt. The merger creates the eighth-largest newspaper company in the nation based on daily and Sunday circulation.
The Star Tribune is the leading newspaper in Minnesota with circulation of 387,000 daily and 673,000 on Sunday. It ranks as the 16th largest daily and the 12th largest Sunday newspaper in the country. The Star Tribune's daily circulation is nearly twice that of its primary competitor in the Twin Cities market, the 15th largest in the country. On Sunday, its circulation is two and one half times larger than its competitor and its penetration is the highest among two-paper markets in the United States.
In addition to the Star Tribune, Cowles operates three other business units which McClatchy expects to sell as soon as possible, using the proceeds to reduce debt. The other business units are: Cowles Business Media, Inc., a publisher of specialized business magazines and information services; Cowles Enthusiast Media, Inc., a publisher of 27 special-interest consumer magazines and related books and products; and Cowles Creative Publishing, Inc., a specialty publisher, distributor and direct marketer of books, videos and interactive media for the home arts, home improvement and outdoor markets.
McClatchy Newspapers, Inc., headquartered in Sacramento, California, currently publishes 10 daily and 13 non-daily newspapers located in western coastal states and North and South Carolina. The company reported 1996 revenues of $624 million and had daily circulation of 972,600 and Sunday circulation of 1,175,100. McClatchy's newspapers include, among others, The Sacramento Bee, The News and Observer (Raleigh, NC), The Fresno (CA) Bee, The News Tribune (Tacoma, WA) and the Anchorage Daily News. McClatchy also owns and operates other media-related businesses, including Nando.net, a national online publishing operation and The Newspaper Network, a national newspaper marketing company.
PRNewswire
RECENT NEWS
PRIMEDIA (KIII) ACQUIRES PUBLISHER
Primedia Inc., formerly K-III Communications said that its technical and trade division, Interec Publishing, has acquired Cardinal Business Media, whose magazines include Mix, which covers the professional recording industry; Electronic Musician, which covers computer-generated music production; and Recording Industry Sourcebook, a music industry directory. Also included in the deal are Cardinal's Club Industry News and its related trade shows for owners and operators of commercial health and fitness facilities. Excluding the latest acquisitions, Overland Park, KS-based Interec publishes 17 entertainment and business communications titles including Pool and Spa News, Broadcast Engineering, Millimeter, Video Systems and Telephony. Interec also puts on trade shows. In total, Interec, one of the largest trade publishers in the U.S., publishes 72 magazines, supplements, newsletters and show dailies throughout the world.
PRNewswire
WILEY AND DOW JONES FORM PUBLISHING ALLIANCE
Bonnie Lieberman, Senior Vice President and General Manager of the College Division of John Wiley & Sons, Inc. today announced an agreement with Dow Jones Interactive Publishing, a division of Dow Jones & Company, to develop the Wiley Business Extra program, featuring content from Dow Jones and The Wall Street Journal Interactive Edition, as part of Wiley's print and online college-level business textbook offerings. The Wiley Business Extra program is being created to enhance the student learning experience and offer professors a new level of support resources to strengthen the business curriculum. "We're very excited to be working with Dow Jones to further our long-standing strategic objective to help students to learn and teachers to teach. The Wiley Business Extra program does this by offering students greater insight into their studies through access to Dow Jones publications and articles, including The Wall Street Journal Interactive Edition, and by providing pedagogical tools to help them understand how to use this wealth of information," said Ms. Lieberman.
Wiley Business Extra will deliver the full-text of a selected number of Dow Jones stories, focusing on the topic, industry, or special area of interest relevant to the Wiley textbooks. Dow Jones will scan The Wall Street Journal Interactive Edition and other Dow Jones newswires for stories that match a profile established for the Wiley texts. Stories matching the profile will then be posted on the Business Extra electronic news folder hosted at Wiley's Web site, http://www.wiley.com, along with discussion questions for classroom assignments. Divided into sub-sections, the folder will contain a separate area for each text associated with the program. Wiley will publish a paperback book called The On-Line Business Survival Guide that shows students how to use The Wall Street Journal Interactive Edition, research business problems on the Web, and use the news folder. The customized guide will be available for purchase as a stand-alone or as a supplement to nine Wiley finance accounting, management, and information management textbooks.
(John Wiley)
DOW JONES TO AX 400 WORKERS
Serious Losses at Financial Info Unit As many as 400 workers will be cut from the 4,000-strong staff of Dow Jones Markets, the financial information division of Dow Jones & Co., previously known as Telerate. Reports issued today indicated that Dow Jones & Co., publisher of the Wall Street Journal, would also be announcing its first annual loss since it went public in 1963. That loss is predicted to be as high as $600 million. Dow Jones Market delivers breaking business news and financial information to investors and financial analysts through a proprietary desk terminal network. Reuters and Bloomberg provide competing services. Wall Street analysts had previously speculated that Dow Jones would sell the troubled financial information unit. Today the publishing company said it was reviewing the struggling unit's operations and studying alternative strategies. (See Below)
WSJ
DON’T YOU WISH YOUR LAST NAME WERE MURDOCH?
News America Publishing Group has announced the formation of News America Digital Publishing. The new division will consolidate the Group’s electronic publishing operations, including the TV Guide Entertainment Network (TVGEN); Fox News On-line; Fox Sports On-line; News Internet Services, an internet solutions provider; Kesmai, a multi-player games company; and the Advanced Media Group which focuses on business development and strategic planning. The announcement was made today by Anthea Disney, Chairman and Chief Executive Officer of News America Publishing Group, a division of News Corporation. James Murdoch, formerly News Corporation Vice-President for New Media, has been named President of News America Digital Publishing, reporting to Disney.
(News Corp)
MACROMEDIA PURCHASES NEW JERSEY NEWSPAPERS
Macromedia Inc., parent company of The Record, is purchasing the daily North Jersey Herald & News and 11 weekly newspapers that serve parts of five New Jersey counties. Jonathan Markey, president of the Hackensack-based Record, said Thursday that the Herald & News and the group of weeklies would continue to operate independently, although some administrative functions of the two daily papers may be combined in the future. "We plan to continue to operate the newspaper as the Herald & News, hopefully forever and certainly for as long as it works as expected and continues to provide value," Markey said.
In August, the media giant Gannett Co. announced that it would purchase the Asbury Park Press and the Home News & Tribune. All the papers being purchased by Macromedia are part of North Jersey Newspapers Co., a subsidiary of William Dean Singleton's Denver-based Media News Group. Ten other weeklies operated by North Jersey Newspapers Co. in Union and Warren counties will be kept by Media News. Markey would not disclose the price of the purchase. A newspaper industry analyst, however, estimated the price at $40 million to $50 million, although the total may be lower because the deal does not include real estate or the Herald & News' out-of-date presses.
John Morton, president of a Maryland consulting firm that analyzes media companies, said it is no surprise that Singleton was willing to part with the Herald & News. Singleton's sale of North Jersey Newspapers comes just weeks after Garden State Newspapers, another of his companies, announced that it would purchase the Press-Telegram of Long Beach, Calif., from Knight-Ridder Inc. "He's trying to `cluster' his papers, and if this is the last one in northern New Jersey, I suspect it's something he was planning to sell for some time," Morton said. Morton said that if the Herald & News were the only paper in its market, it might fetch as much as $1,400 per reader, or roughly $75 million. Because the North Jersey market is a competitive one, however, the purchase price most likely is considerably smaller.
Received via NewsEDGE from Desktop Data, Inc.: 11/21/97 03:37:2
DOW JONES BOARD VOTES TO SELL MARKETS UNIT
Dow Jones & Co.'s (DJ) board voted Thursday to put its Dow Jones Markets unit up for sale, The New York Times reported Friday, citing a person close to Dow Jones. On Wednesday, the company said Dow Jones Markets will focus on competitive strengths in content and its workstation product line, while continuing to examine all alternatives. The company also said it will cut the unit's staff by 200 to 300 by early 1998, while scaling back the investment program for Dow Jones Markets. Dow Jones added that it plans a "sizable" fourth-quarter charge, reflecting a write-down of goodwill, severance and other costs. According to the Times, the person close to Dow Jones said an analysis of Dow Jones Markets is expected to be prepared and completed in about three weeks and will then be available to prospective buyers. The Times said possible buyers include Bloomberg LP (X.BBG); Reuters Holdings PLC (RTRSY); Thomson Corp. (T.TOC); and Welsh, Carson, Anderson & Stowe, the investment company that owns Bridge News.
Received via NewsEDGE from Desktop Data, Inc.: 11/21/97 02:28:35
SPRINGER CHAIRMAN PLANS TO STEP DOWN
Axel Springer Verlag AG Chairman Juergen Richter will step down from his position at the end of the year, the company said. The German media group said that "after events of the last few weeks and publicized disparagements against (Richter), continuation of his contract cannot occur." Mr. Richter will continue performing all functions of chairman until Dec. 31, Springer said. In recent weeks, various German newspapers have speculated that Mr. Richter would be asked to step down, due to disagreements over his management style. Springer didn't say who would replace Mr. Richter, and company officials weren't immediately available to comment.
Axel Springer Verlag AG is a major German publishing and broadcasting group. Its principal operations are in newspapers, including the country's top-circulation tabloid "Bild" and daily newspaper "Die Welt." Springer also has magazine and television operations.
Copyright (c) 1997 Dow Jones and Company, Inc.
DOW JONES TO ACQUIRE REST OF IDD ENTERPRISES L.P.
Dow Jones & Co. said it plans to acquire the roughly 30% it doesn't already own of IDD Enterprises L.P. and sell parts of the financial-publishing, software and on-line services concern. Terms weren't disclosed. Dow Jones said it also plans to restructure IDD as part of a continuing program to shed noncore businesses. Under the restructuring plan, Dow Jones said it sold IDD's publishing operations, including magazines Investment Dealer's Digest and Mergers & Acquisitions Journal, to Securities Data Publishing, a unit of Thomson Corp. Dow Jones said it agreed to sell IDD's retail investment-services operations to a management group led by Leonard W. Hirschfeld, currently senior vice president with IDD. Mr. Hirschfeld will leave IDD to head the new business. The major remaining IDD asset to be kept by Dow Jones is Tradeline, a market information database used by investment banks and financial-services and information companies. In addition to IDD, Dow Jones publishes The Wall Street Journal, The Wall Street Journal Interactive Edition, Barron's magazine, electronic business information services including Dow Jones Markets and the Dow Jones Newswires, and the Ottaway group of community newspapers. Dow Jones also produces business television programming.
Copyright (c) 1997 Dow Jones and Company, Inc.
Tuesday, October 28, 1997
10/28/97: Primedia, Dow Jones, Amazon.com,
Summary:
Washington Post Co. 3q Profit Up 29%
K-Iii Communications Creates A New Division, The Supplemental Education Group
Dow Jones Rumored To Be Mulling Sale Of Markets Unit
Saddle Up Silver….Polo Magazine Re-launch For Stylish Ride
Gruner & Jahr Reported Looking At Reed IPC Magazines
Amazon.Com And Barnes & Noble Drop Suits
Knight-Ridder, NY Times Unveil New Online Initiative
Busy Week For Ziff-Davis Publishing
Soundscan
Costco
RECENT NEWS:
WASHINGTON POST CO. 3Q PROFIT UP 29%
The Washington Post Co. reported net income of $71.6 million or $6.64 per share for the third quarter, up 29% from net income of $55.4 million or $5 per share in the year-ago period. Quarterly revenue totaled $478.4 million, up 4% from revenue of $460.3 million in the year-ago period. The company cited strength from its print businesses, partially offset by increased spending at the company's other business. The results include a one-time after-tax gain of $16 million relating to the sale of its PASS Sports subsidiary and termination of its regional sports network. Third-quarter newspaper division revenue rose 4%; broadcast division revenue rose 1%; and the cable division, which serves 635,000 households, had revenue increased 13%.
The Post Co.'s stock closed Tuesday at $457.75 per share, down $1.5625.
Cowles/Simba Media Daily 10/21/97
Copyright 1997 Cowles Business Media. All rights reserved.
K-III COMMUNICATIONS CREATES A NEW DIVISION, THE SUPPLEMENTAL EDUCATION GROUP
K-III Communications, publisher of several trade and consumer magazines and educational properties, such as the World Almanac and Westcott Communications' 22 educational TV networks, has announced the creation of a new division, the Supplemental Education Group. The new group will comprise national elementary school publication The Weekly Reader, Funk & Wagnall's Encyclopedia, the World Almanac and educational video company Films for the Humanities & Sciences. Weekly Reader president and CEO Richard LeBrasseur will be the group's president.
Cowles/Simba Media Daily 10/21/97
Copyright 1997 Cowles Business Media. All rights reserved.
DOW JONES RUMORED TO BE MULLING SALE OF MARKETS UNIT
Dow Jones & Co. said it was placing its revamp of its Dow Jones Markets financial information service under review, suggesting to some analysts that it might be planning to sell off the struggling unit. Dow Jones spokesman Richard Tofel would only say that the board of directors was "reviewing" Dow Jones Markets' previously announced $650 million overhaul and considering "various alternatives" for the unit, which was formerly known as Dow Jones Telerate. Tofel noted that review is part of the company's overall budget planning for the coming year.
Dow Jones Markets currently provides electronic financial data to corporate customers, but has faced increasing competition from online services, brokerage houses and other suppliers of financial information. The review comes on the heels of Dow Jones taking a 34% third-quarter earnings hit, in part due to Dow Jones Markets suffering an 83% loss in operating income.
Analysts conjecture that rivals Reuters PLC and Bloomberg LP may be in line to bid on the unit. Thus far, Dow Jones has only denied rumors that the unit is for sale. A joint venture with NBC was floated as another possibility for Dow Jones Markets.
Cowles/Simba Media Daily 10/20/97
Copyright 1997 Cowles Business Media. All rights reserved.
SADDLE UP SILVER….POLO MAGAZINE RE.LAUNCH FOR STYLISH RIDE
POLO magazine, which for 23 years has continuously chronicled the game and lifestyle of polo, goes into mass circulation this week expanded into a bold and colorful journal of adventure, elegance and sport. The glossy magazine's re-launched October / November issue of 550,000 copies is one of the largest in publishing history and exceeds House & Garden's vaunted re-launch last year. POLO magazine will send copies of the magazine and a special subscription offer to 1 million Neiman Marcus card holders over the next year.
Beginning early next year, POLO magazine will be sold at $6 an issue at newsstands at selected airports, bookstores, grocery stores and high-end retailers. The magazine will also expand on its international readership in such markets as London, Paris and Buenos Aires. POLO magazine, which derives its name from what is called "the sport of kings," also will distribute the magazine to royalty throughout the world including kings, queens, princes, princesses and sultans. In fact, the magazine plans an upcoming feature on the Sultan of Brunei, who reportedly keeps his polo field lighted throughout the night and a stable of players and ponies at the ready 24 hours a day for whenever he has the urge to play.
SOURCE Westchester Media Company
GRUNER & JAHR REPORTED LOOKING AT REED IPC MAGAZINES
LONDON (AP-Dow Jones)-- Gruner & Jahr , a 75% owned publishing subsidiary of Germany's Bertelsmann AG (G.BRT), has held 'informal' talks with Reed Elsevier (u.ree n.els) about buying IPC Magazines, the Anglo-Dutch publisher's U.K. consumer magazine business officially put up for sale Monday. Executives familiar with the situation confirmed late Monday that the Bertelsmann unit had approached Reed Elsevier about buying IPC, which publishes some 70 titles ranging from Woman to Marie Claire to Loaded.
A person familiar with the situation said G&J 'were interested and indeed have informally contacted' Reed Elsevier about buying IPC. However, stiff competition for the unit could come from EMAP PLC, a U.K. magazine publisher with significant French publishing interests. A management buyout of the titles is a further possibility, onlookers said. The publishing executive said Reed Elsevier had chosen to sell IPC now because 'the business is at a peak' with advertising revenue at cyclical highs and paper prices at cyclical lows. The executive also noted that IPC had undergone drastic cost cutting, while receiving little in the way of new investment.
'I cannot imagine someone buying the whole thing,' the executive said, while acknowledging that Reed Elsevier will push hard to sell the unit in one piece. The source also said that IPC could fetch $1.2-1.5MM, should several interested bidders emerge. In the year ending December 1996, IPC (excluding New Scientist) reported sales of 314 million GBP and profit of 63 million GBP
Onlookers note that G&J, which publishes women's market titles such as Prima and Best, is a natural fit with IPC, whose titles include Woman, Woman's Own and Marie Claire. 'It's a perfect match with IPC,' said one onlooker.
A spokesman for SBC Warburg Dillon Reed, which is advising Reed Elsevier on the sale, refused comment on whether talks with G&J had begun. Other buyers for IPC could include U.S. publishers Time Warner and Hearst Corp. as well as French publishers Matra Hachette and Havas.
AP-DOW JONES NEWS 27-10-97
ON-LINE NEWS:
AMAZON.COM AND BARNES & NOBLE DROP SUITS
According to the joint press release, online booksellers Amazon.com and BarnesandNoble.com agreed Tuesday to drop their respective lawsuits. The plaintiffs recognized "they would rather compete in the marketplace than in the courtroom." In a related note B&N reported web sales could top $100MM in 1998 which is the close to the expected level for Amazon.com.
KNIGHT-RIDDER, NY TIMES UNVEIL NEW ONLINE INITIATIVES
Knight-Ridder New Media made the newspaper industry's debut entry into the online city guide network field on Monday with Real Cities (http://www.realcities.com). The rollout includes 32 Web sites of local Knight-Ridder newspapers across the U.S., networked under the umbrella brand Real Cities; all sites had already existed independently. However, Real Cities has added proprietary services such as CarHunter, HomeHunter and entertainment search engine JustGo; these and others will apply to all Real Cities member sites as Knight-Ridder continues to build out the network.
Real Cities is going up against established online brands Digital City from America Online and Sidewalk from Microsoft, as well as numerous individual city guides and the emergence of localized directory and search sites such as Yahoo. But the company hopes to distinguish itself through the home-grown content of its local publications and its reputable journalism. "On other online guides, there is a lack of quality in community reporting," said Real Cities national marketing director Amy Rabinovitz.
Meanwhile, The New York Times announced that it is launching New York Today (http://www.nytoday.com) in January, which is intended to be the definitive guide to New York culture, news and services. It's unclear how the newspaper company plans to outdo the many local guides for New York City, which include – in addition to national brands Sidewalk, Digital City, CitySearch and Yahoo – local properties such as the Village Voice http://www.villagevoice.com), Total New York (http://www.totalny.com) and recently launched New York magazine (http://www.newyorkmag.com).
Cowles/Simba Media Daily 10/21/97
Copyright 1997 Cowles Business Media. All rights reserved.
BUSY WEEK FOR ZIFF-DAVIS PUBLISHING
While its parent company Softbank Corp. is floundering financially as a result of making acquisitions it can't afford, Ziff-Davis Publishing Co. -- purchased by Tokyo-based Softbank in 1994 -- owns several leading products in the computer publishing industry. In an effort to create community-focused services, ZDNet joined with personalization technology developer Firefly for the launch of My Hot Files (http://hotfiles.firefly.com).
Firefly, which also provides the underlying technology for Yahoo's My Yahoo service (http://www.my.yahoo.com), has enabled users in search of shareware to tailor ZDNet's shareware site Hot Files to their needs. Now those customers can receive alerts and recommendations based on their registered profiles (which are dynamically compared to other users) and their shareware preferences through Firefly's collaborative filtering.
Cowles/Simba Media Daily 10/20/97
Copyright 1997 Cowles Business Media. All rights reserved.
DID YOU KNOW?
Soundscan reports sales (POS system) for 85% of all music stores (and growing) and the company is expanding into book store sales reporting. Soundscan has been criticised in the Music business for being too expensive to subscribe to however the system is being credited with reducing music store returns from 23% to 13% (1990-93). Each point is worth $15MM. A system called BookTrack has been operational in the UK for the past year and currently 40% of all book publishers use the system.
COSTCO, a warehouse club, has moved to vendor managed inventory for it’s book departments. Over 40% of book sales at warehouse clubs are Harcover fiction titles.
Washington Post Co. 3q Profit Up 29%
K-Iii Communications Creates A New Division, The Supplemental Education Group
Dow Jones Rumored To Be Mulling Sale Of Markets Unit
Saddle Up Silver….Polo Magazine Re-launch For Stylish Ride
Gruner & Jahr Reported Looking At Reed IPC Magazines
Amazon.Com And Barnes & Noble Drop Suits
Knight-Ridder, NY Times Unveil New Online Initiative
Busy Week For Ziff-Davis Publishing
Soundscan
Costco
RECENT NEWS:
WASHINGTON POST CO. 3Q PROFIT UP 29%
The Washington Post Co. reported net income of $71.6 million or $6.64 per share for the third quarter, up 29% from net income of $55.4 million or $5 per share in the year-ago period. Quarterly revenue totaled $478.4 million, up 4% from revenue of $460.3 million in the year-ago period. The company cited strength from its print businesses, partially offset by increased spending at the company's other business. The results include a one-time after-tax gain of $16 million relating to the sale of its PASS Sports subsidiary and termination of its regional sports network. Third-quarter newspaper division revenue rose 4%; broadcast division revenue rose 1%; and the cable division, which serves 635,000 households, had revenue increased 13%.
The Post Co.'s stock closed Tuesday at $457.75 per share, down $1.5625.
Cowles/Simba Media Daily 10/21/97
Copyright 1997 Cowles Business Media. All rights reserved.
K-III COMMUNICATIONS CREATES A NEW DIVISION, THE SUPPLEMENTAL EDUCATION GROUP
K-III Communications, publisher of several trade and consumer magazines and educational properties, such as the World Almanac and Westcott Communications' 22 educational TV networks, has announced the creation of a new division, the Supplemental Education Group. The new group will comprise national elementary school publication The Weekly Reader, Funk & Wagnall's Encyclopedia, the World Almanac and educational video company Films for the Humanities & Sciences. Weekly Reader president and CEO Richard LeBrasseur will be the group's president.
Cowles/Simba Media Daily 10/21/97
Copyright 1997 Cowles Business Media. All rights reserved.
DOW JONES RUMORED TO BE MULLING SALE OF MARKETS UNIT
Dow Jones & Co. said it was placing its revamp of its Dow Jones Markets financial information service under review, suggesting to some analysts that it might be planning to sell off the struggling unit. Dow Jones spokesman Richard Tofel would only say that the board of directors was "reviewing" Dow Jones Markets' previously announced $650 million overhaul and considering "various alternatives" for the unit, which was formerly known as Dow Jones Telerate. Tofel noted that review is part of the company's overall budget planning for the coming year.
Dow Jones Markets currently provides electronic financial data to corporate customers, but has faced increasing competition from online services, brokerage houses and other suppliers of financial information. The review comes on the heels of Dow Jones taking a 34% third-quarter earnings hit, in part due to Dow Jones Markets suffering an 83% loss in operating income.
Analysts conjecture that rivals Reuters PLC and Bloomberg LP may be in line to bid on the unit. Thus far, Dow Jones has only denied rumors that the unit is for sale. A joint venture with NBC was floated as another possibility for Dow Jones Markets.
Cowles/Simba Media Daily 10/20/97
Copyright 1997 Cowles Business Media. All rights reserved.
SADDLE UP SILVER….POLO MAGAZINE RE.LAUNCH FOR STYLISH RIDE
POLO magazine, which for 23 years has continuously chronicled the game and lifestyle of polo, goes into mass circulation this week expanded into a bold and colorful journal of adventure, elegance and sport. The glossy magazine's re-launched October / November issue of 550,000 copies is one of the largest in publishing history and exceeds House & Garden's vaunted re-launch last year. POLO magazine will send copies of the magazine and a special subscription offer to 1 million Neiman Marcus card holders over the next year.
Beginning early next year, POLO magazine will be sold at $6 an issue at newsstands at selected airports, bookstores, grocery stores and high-end retailers. The magazine will also expand on its international readership in such markets as London, Paris and Buenos Aires. POLO magazine, which derives its name from what is called "the sport of kings," also will distribute the magazine to royalty throughout the world including kings, queens, princes, princesses and sultans. In fact, the magazine plans an upcoming feature on the Sultan of Brunei, who reportedly keeps his polo field lighted throughout the night and a stable of players and ponies at the ready 24 hours a day for whenever he has the urge to play.
SOURCE Westchester Media Company
GRUNER & JAHR REPORTED LOOKING AT REED IPC MAGAZINES
LONDON (AP-Dow Jones)-- Gruner & Jahr , a 75% owned publishing subsidiary of Germany's Bertelsmann AG (G.BRT), has held 'informal' talks with Reed Elsevier (u.ree n.els) about buying IPC Magazines, the Anglo-Dutch publisher's U.K. consumer magazine business officially put up for sale Monday. Executives familiar with the situation confirmed late Monday that the Bertelsmann unit had approached Reed Elsevier about buying IPC, which publishes some 70 titles ranging from Woman to Marie Claire to Loaded.
A person familiar with the situation said G&J 'were interested and indeed have informally contacted' Reed Elsevier about buying IPC. However, stiff competition for the unit could come from EMAP PLC, a U.K. magazine publisher with significant French publishing interests. A management buyout of the titles is a further possibility, onlookers said. The publishing executive said Reed Elsevier had chosen to sell IPC now because 'the business is at a peak' with advertising revenue at cyclical highs and paper prices at cyclical lows. The executive also noted that IPC had undergone drastic cost cutting, while receiving little in the way of new investment.
'I cannot imagine someone buying the whole thing,' the executive said, while acknowledging that Reed Elsevier will push hard to sell the unit in one piece. The source also said that IPC could fetch $1.2-1.5MM, should several interested bidders emerge. In the year ending December 1996, IPC (excluding New Scientist) reported sales of 314 million GBP and profit of 63 million GBP
Onlookers note that G&J, which publishes women's market titles such as Prima and Best, is a natural fit with IPC, whose titles include Woman, Woman's Own and Marie Claire. 'It's a perfect match with IPC,' said one onlooker.
A spokesman for SBC Warburg Dillon Reed, which is advising Reed Elsevier on the sale, refused comment on whether talks with G&J had begun. Other buyers for IPC could include U.S. publishers Time Warner and Hearst Corp. as well as French publishers Matra Hachette and Havas.
AP-DOW JONES NEWS 27-10-97
ON-LINE NEWS:
AMAZON.COM AND BARNES & NOBLE DROP SUITS
According to the joint press release, online booksellers Amazon.com and BarnesandNoble.com agreed Tuesday to drop their respective lawsuits. The plaintiffs recognized "they would rather compete in the marketplace than in the courtroom." In a related note B&N reported web sales could top $100MM in 1998 which is the close to the expected level for Amazon.com.
KNIGHT-RIDDER, NY TIMES UNVEIL NEW ONLINE INITIATIVES
Knight-Ridder New Media made the newspaper industry's debut entry into the online city guide network field on Monday with Real Cities (http://www.realcities.com). The rollout includes 32 Web sites of local Knight-Ridder newspapers across the U.S., networked under the umbrella brand Real Cities; all sites had already existed independently. However, Real Cities has added proprietary services such as CarHunter, HomeHunter and entertainment search engine JustGo; these and others will apply to all Real Cities member sites as Knight-Ridder continues to build out the network.
Real Cities is going up against established online brands Digital City from America Online and Sidewalk from Microsoft, as well as numerous individual city guides and the emergence of localized directory and search sites such as Yahoo. But the company hopes to distinguish itself through the home-grown content of its local publications and its reputable journalism. "On other online guides, there is a lack of quality in community reporting," said Real Cities national marketing director Amy Rabinovitz.
Meanwhile, The New York Times announced that it is launching New York Today (http://www.nytoday.com) in January, which is intended to be the definitive guide to New York culture, news and services. It's unclear how the newspaper company plans to outdo the many local guides for New York City, which include – in addition to national brands Sidewalk, Digital City, CitySearch and Yahoo – local properties such as the Village Voice http://www.villagevoice.com), Total New York (http://www.totalny.com) and recently launched New York magazine (http://www.newyorkmag.com).
Cowles/Simba Media Daily 10/21/97
Copyright 1997 Cowles Business Media. All rights reserved.
BUSY WEEK FOR ZIFF-DAVIS PUBLISHING
While its parent company Softbank Corp. is floundering financially as a result of making acquisitions it can't afford, Ziff-Davis Publishing Co. -- purchased by Tokyo-based Softbank in 1994 -- owns several leading products in the computer publishing industry. In an effort to create community-focused services, ZDNet joined with personalization technology developer Firefly for the launch of My Hot Files (http://hotfiles.firefly.com).
Firefly, which also provides the underlying technology for Yahoo's My Yahoo service (http://www.my.yahoo.com), has enabled users in search of shareware to tailor ZDNet's shareware site Hot Files to their needs. Now those customers can receive alerts and recommendations based on their registered profiles (which are dynamically compared to other users) and their shareware preferences through Firefly's collaborative filtering.
Cowles/Simba Media Daily 10/20/97
Copyright 1997 Cowles Business Media. All rights reserved.
DID YOU KNOW?
Soundscan reports sales (POS system) for 85% of all music stores (and growing) and the company is expanding into book store sales reporting. Soundscan has been criticised in the Music business for being too expensive to subscribe to however the system is being credited with reducing music store returns from 23% to 13% (1990-93). Each point is worth $15MM. A system called BookTrack has been operational in the UK for the past year and currently 40% of all book publishers use the system.
COSTCO, a warehouse club, has moved to vendor managed inventory for it’s book departments. Over 40% of book sales at warehouse clubs are Harcover fiction titles.
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