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.
Friday, November 21, 1997
Saturday, November 15, 1997
11/15/97: Thomson, Simon&Schuster, KnightRidder, Amazon.com,
Summary:
Thomson Corp.: Publishing, Travel Units Help Boost Earnings 14%
Stephen King And Simon & Schuster In Book Deal
Knight-Ridder Sells Newspaper
Ziff-Davis And Warner Publisher Services Announce Revolutionary Magazine Distribution Agreement
Golden Books Family Entertainment
Avon Products, Inc. And Hachette Filipacchi
Idg Books Worldwide To Buy Mis: And M&T Computer Presses From Henry Holt
Oracle 8 Selected As Database To Fuel The Unisys Hermes Publishing System
Amazon.Com And @Home Network Sign Multi-Year Agreement To Sell Books Over The @Home Service
Oxford University Press And Imark Announce Electronic Publishing Agreement
CMP Media Expands Internet Management Team With The Addition Of Two New Positions
Princeton Media Group Inc. Announces New Chief Financial Officer
RECENT NEWS:
THOMSON CORP.: PUBLISHING, TRAVEL UNITS HELP BOOST EARNINGS 14%
Thomson Corp., buoyed by higher earnings from its publishing and travel operations, reported a 14% increase in third-quarter earnings and boosted its quarterly dividend by 6.9%. Thomson, Toronto, reported third-quarter earnings of US$342 million, or 56 cents a share, compared with $301 million, or 50 cents a share, a year earlier. Revenue was $2.74 billion, up 10% from $2.49 billion a year earlier. Thomson, which has interests in newspapers, publishing, databases and travel services, increased its quarterly dividend to 15.5 U.S. cents a share from 14.5 cents a share. Thomson rose 1.50 Canadian dollars (US$1.07) to C$35.50 in Toronto Stock Exchange trading.
WSJviaNewsEDGE Copyright (c) 1997 Dow Jones and Company, Inc. Received via NewsEDGE from Desktop Data, Inc.: 11/07/97 02:15:18
STEPHEN KING AND SIMON & SCHUSTER IN BOOK DEAL
Best-selling author Stephen King and Simon & Schuster struck a tentative deal Thursday to publish his novel ``Bag of Bones'' in an unconventional arrangement that will give the horror writer a share of nearly 50 percent of the profits. The negotiations came after King's highly unusual public search for a new company to replace Viking, his longtime publisher. His original $17 million asking price prompted much complaining in the publishing industry that such a conventional deal was a money-losing proposition. But Thursday, Simon & Schuster, a unit of Viacom Inc., announced a three-book ``co-publishing venture'' with King that will give him a share of the profits and of the risks and responsibilities for pricing, marketing and packaging his books. King, who was traveling to New York for a meeting with Simon & Schuster on the agreement, could not be reached for comment. According to a person close to the negotiations, King will share in almost 50 percent of the profits and will receive an advance that is small by his standards - almost $2 million a book. He will not receive bonuses or royalties. The three books are ``Bag of Bones,'' a collection of short stories and a work on the craft of writing.
NYTviaNewsEDGE Copyright (c) 1997 The New York Times Co.
KNIGHT-RIDDER SELLS NEWSPAPER
MIAMI – Knight-Ridder Inc. said it sold the Long Beach Press-Telegram to Garden State Newspapers Inc. for an undisclosed price. The sale completes Knight-Ridder's previously announced plan to sell five newspapers. Garden State Newspapers is a unit of Affiliated Newspapers Inc., Denver.
WSJviaNewsEDGE Copyright (c) 1997 Dow Jones and Company, Inc. Received via NewsEDGE from Desktop Data, Inc.: 11/10/97 02:08:13
ZIFF-DAVIS AND WARNER PUBLISHER SERVICES ANNOUNCE REVOLUTIONARY MAGAZINE DISTRIBUTION AGREEMENT
Entire Stable of Ziff-Davis Magazines to Receive Increased Distribution and Exposure at the Retail Level
NEW YORK, Nov. 11 /PRNewswire/ -- Ziff-Davis, a SOFTBANK Company, and Warner Publisher Services (WPS), a TimeWarner Company, announced today an agreement whereby the entire 13-title line of Ziff-Davis paid-circulation magazines in the U.S. will be distributed nationally by WPS. In announcing the new agreement, Claude Sheer, President, ZD Publishing, and Dan Rubin, President of WPS, emphasized the unique benefits of this new publishing partnership. Rubin said, "We're combining the strengths of three unique industry leaders: Ziff-Davis, the world's leading publisher of computer and video game magazines; the vast distribution capabilities of WPS; plus retail-level merchandising and marketing support from Time Distribution Services. We believe it's a fortuitous combination of resources that will help raise Ziff- Davis' already strong, newsstand sales to new heights." In discussing the agreement, James Gerth, ZD Single Copy Sales and Marketing Director, explained: "This new arrangement will allow us to more efficiently serve both the wholesaler and retailer communities. Given the big changes we've seen recently in the newsstand environment, we're especially pleased, and optimistic, now that this unique agreement is in place." Sheer added, "While Ziff-Davis has seen tremendous growth in its Internet business, growth for all ZD print products remains strong, including those for our flagship, PC Magazine, as well as for Computer Shopper, PC Computing, and Electronic Gaming Monthly." Sheer continued, "Magazines are a vital part of our business, and newsstand sales are integral to our publishing plans. We believe this new agreement will carry us to even greater growth in this important area. That's good news for us, and also for our readers, advertisers, and the wholesalers and retailers who handle our publications."
SOURCE Ziff Davis
Business Brief -- GOLDEN BOOKS FAMILY ENTERTAINMENT: Loss Narrows Amid Decline In Costs From Restructuring
Golden Books Family Entertainment Inc. reported that its third-quarter net loss narrowed, in part because of a decrease in costs related to a continuing restructuring program. The New York company posted a net loss of $17.9 million, or 76 cents a share, compared with a loss of $96.8 million, or $4.29 a share, a year earlier. Results for the latest quarter include a restructuring charge of $3.3 million, or 12 cents a share. Results for the year-earlier period include charges of $80.1 million, or $3.01 a share, largely for restructuring. Revenue decreased 21% to $53.3 million from $67.5 million. The company's main operations include children's publishing and entertainment products for children and families.
WSJviaNewsEDGE Copyright (c) 1997 Dow Jones and Company, Inc. Received via NewsEDGE from Desktop Data, Inc.: 11/12/97 02:15:53
AVON PRODUCTS, INC. AND HACHETTE FILIPACCHI JOIN TO LAUNCH NEW MAGAZINE DISTRIBUTION THROUGH AVON REPRESENTATIVES AND NEWSSTAND
NEW YORK, Nov. 14 /PRNewswire/ -- Avon Products, Inc. (NYSE: AVP) and Hachette Filipacchi Magazines today announced that they will launch a new magazine for women. The two companies -- global leaders in their respective fields -- will together publish Athena: Common Sense, Uncommon Style, designed to provide insightful information about beauty, well-being, and lifestyle for women. "Athena represents a new dimension in publishing," explains David Pecker, President and Chief Executive Officer, Hachette Filipacchi Magazines. "The magazine will deliver the spirit of beauty and high fashion along with accessible information and service. We are thrilled to be in this unique joint publishing venture with Avon."
Debuting in the U.S. with the May/June launch issue in April 1998, Athena is set for a bimonthly schedule. The publication will be initially distributed through the 440,000 U.S. Avon Sales Representatives, as well as newsstands. Cover price will be $3.50, with special pricing for Avon Representatives and their customers. Future global opportunities will be explored to bring Athena to other markets around the world, tapping the powerful distribution network of more than 2 million Avon Sales Representatives worldwide. In both domestic and global markets, Avon's key objective for Athena is to strengthen the company's image and role as a beauty authority. Avon will be the exclusive beauty advertiser in Athena, but the publication will be open to all advertisers in non-competitive categories, such as consumer packaged goods, travel, and automotive, who wish to reach the Athena reader.
Hachette Filipacchi Magazines currently publishes 29 consumer titles reaching over 47 million readers, including American Photo, Audio, Best Selling Home Plans, Boating, Car and Driver, Car Stereo Review, Cycle World, ELLE, ELLE Decor, Family Life, Flying, George, HOME, Metropolitan Home, Popular Photography, Premiers, Road & Track, Showboats International, Stereo review, TopModel, Travel Holiday, Video, Woman's Day, and Eating Well, as well as a number of quarterlies and special publications. HFM is a wholly-owned subsidiary of Hachette Filipacchi Medias, the world's largest magazine publisher, with diverse holdings in printing, newspaper, film production, and outdoor advertising.
IDG BOOKS WORLDWIDE TO BUY MIS: AND M&T COMPUTER PRESSES FROM HENRY HOLT
FOSTER CITY, Calif., Nov. 12 /PRNewswire/ -- IDG Books Worldwide, Inc. has signed a letter of intent to purchase MIS: Press and M&T Books from Henry Holt Publishers in New York for an undisclosed sum. The deal takes Holt out of trade computer book publishing and reinforces IDG Books Worldwide's leadership in technology publishing. IDG Books Worldwide, Inc., founded in 1990, is the number two computer book publisher with total FY1997 gross revenues in excess of $150 million. Final terms of the agreement are expected by the end of this month.
IDG Books Worldwide President and Publisher Steven Berkowitz characterized the acquisition as a strategic move in an industry that is seeing more consolidation. "MIS: Press and M&T Books produce well-written books and series that are in keeping with our commitment to publishing high quality editorial content. Our strengths in building and marketing brands will help us to expand our market share in the tightening book publishing arena."
IDG Books Worldwide, best known for its 40 million selling ... For Dummies(R) series, has made branding a phenomenon in book publishing. The company has created highly identifiable, successful brands for users ranging from beginners using the ...Simplified (R) 4-color illustrated books to high- end professionals using the certification series for Novell and Microsoft engineers and system administrators. IDG Books Worldwide, Inc. is a subsidiary of IDG, the world's leading IT media, research and exposition company. IDG publishes more than 285 computer magazines and newspapers and 500 book titles and offers the largest network of technology specific sites around the world, located at http://www.idg.net, which comprises more than 170 targeted Web sites in 45 countries. IDG is also a leading producer of 110 computer-related expositions worldwide, and provides IT market analysis through 49 offices in 41 countries worldwide. Company information is available at http://www.idg.com. Information about IDG Books is available at http://www.idgbooks.com. SOURCE IDG Books Worldwide, Inc.
ORACLE 8 SELECTED AS DATABASE TO FUEL THE UNISYS HERMES PUBLISHING SYSTEM
REDWOOD SHORES, Calif., Nov. 12 /PRNewswire/ -- Oracle Corp. (Nasdaq: ORCL) and Unisys (NYSE: UIS), a leading newspaper-system supplier, today announced they will deliver an integrated system, based on Sun Microsystem's Solaris platform, that answers the increasingly complex information technology needs of the publishing industry. Unisys has chosen Oracle8(TM) to power the Unix-Based version of Hermes, its global, integrated publishing system. Hermes will meet user requirements for scalability, reliability and tight-system integration in order to redefine workflow, reduce costs and help in the migration to electronic publishing. This combination will enable publishers to streamline their business from editorial, production and archiving processes to management of all news information electronically to support for hundreds of concurrent users.
"The core competencies of Oracle8 -- the ability to handle more data, support more users, deliver results faster and at a lower price - directly address the needs being expressed in the publishing industry today," said Polly Sumner, senior vice president of Communications Industry, Oracle Corp. "Unisys' Hermes system with Oracle8 as the database backbone provides publishers with the ability to globally manage and deliver information for both traditional and electronic publishing mediums."
"For publishing groups that are looking to reengineer their publishing systems and to reengineer their productions processes, the Unisys Publishing Solutions offer global, scaleable, integrated applications," said Franco Giglio, director of Publishing Center of Excellence Systems, Unisys. "Oracle8 provides the database engine needed to support the scalability and reliability requirements of our customers." The Hermes publishing system, a major component of the Unisys Publishing Solutions, has been expressly designed for metropolitan newspapers which face large organizational issues and complex production processes in highly mission-critical environments. Hermes is applicable for both text-driven and layout-driven publications, as it can support several editorial organizations' needs for design layout, text and headline editing, image processing, ad display creation, page planning, production tracking and full-page output.
ONLINE/INTERNET NEWS:
AMAZON.COM AND @HOME NETWORK SIGN MULTI-YEAR AGREEMENT TO SELL BOOKS OVER THE @HOME SERVICE
SEATTLE, and REDWOOD CITY, Calif., Nov. 10 /PRNewswire/ -- Amazon.com, Inc. (Nasdaq: AMZN), the leading online book retailer, and @Home Network (Nasdaq: ATHM), the leader in high-speed Internet services via the cable infrastructure, today announced a multi-year agreement whereby Amazon.com (www.amazon.com) will be the premier bookseller throughout the @Home service. @Home users will have high-speed, direct access to browse and purchase books from Amazon.com's catalog of more than 2.5 million books. These services are expected to be integrated into @Home's service by the end of the year. This agreement marks the first time Amazon.com has formed a strategic alliance with a cable Internet service provider.
Based in Redwood City, California, @Home Network (http://www.home.net) distributes high-speed interactive services to residences and businesses using its own network architecture and a variety of transport options including the cable industry's hybrid-fiber coaxial infrastructure. The cable connection provides users significant increases in speed over conventional Internet services. Leveraging the "always on" attributes of cable, @Home allows for unique multimedia applications that go beyond current Web experiences. Since its founding in May 1995, @Home Network has reached affiliate agreements with eight leading cable companies in North America, including Tele-Communications Inc., Cablevision Systems Corp., Comcast Corporation , Cox Communications, InterMedia Partners, Marcus Cable, Rogers Cablesystems Limited, and Shaw Communications
OXFORD UNIVERSITY PRESS AND IMARK ANNOUNCE ELECTRONIC PUBLISHING AGREEMENT
RESTON, Va.--(BUSINESS WIRE)--Nov. 6, 1997--Imark Technologies Inc. (NASDAQ: MAXX) a leading provider of electronic commerce solutions to the information industry, announces an agreement with Oxford University Press USA (OUP) to develop an e-commerce version of "The Computational Intelligence Library" to be available commercially in 1998. Through this collaboration, OUP will employ Imark's award winning NET-MAX(TM) Internet billing system, which enables information providers to outsource the complete development and maintenance of all electronic commerce functions. Imark's NET-MAX metering and billing system is the winner of the 1997 Information Industry Association Award for the Best Enabling Technology of the Year.
The Computational Intelligence Library, a joint publication of OUP and the Institute of Physics Publishing, is a comprehensive reference tool for computer scientists, engineers, psychologists, mathematicians, and physicists, providing a continuously updated overview of the dynamic field of Computational Intelligence. The Computational Library is positioned as an all-encompassing reference that collates research findings from various sources into one authoritative work. Imark will assist OUP in optimizing the online version of the library, designing an online customer registration system with tracking and reporting of customer usage, and advising on possible future enhancements to the pricing model. "We are very pleased to enter into this exciting new relationship with Imark Technologies. What Imark offers Oxford University Press is the ability to bring a niche product to market quickly and cost-effectively with an award winning e-commerce system to back it up" said Royalynn O'Connor, Online product director at Oxford University Press-USA.
PEOPLE ON THE MOVE:
CMP MEDIA EXPANDS INTERNET MANAGEMENT TEAM WITH THE ADDITION OF TWO NEW POSITIONS
MANHASSET, N.Y.--(BUSINESS WIRE)--Nov. 11, 1997-- CMP Media's (Nasdaq: CMPX) rapidly-growing CMPnet, the technology network at http://www.CMPnet.com, has created two new management positions and concurrently named a new Associate Publisher for sales and a new Director of Marketing. Chris Tice, most recently CMPnet's Associate Publisher, Sales and Marketing, has assumed the new position of Associate Publisher, Business Development and will retain responsibility for marketing and research. Meryl Otis, previously Associate Publisher for NetGuide Magazine, has been named Associate Publisher, Sales for CMPnet. Aimee Levine joins CMPnet from Time Warner as Director of Marketing. Helen Flaum, formerly a Director of Information Technology in CMP's corporate IT department, has moved over to the Internet Media Group as Director of Operations for the group, which produces CMPnet. In announcing the staffing changes, Rebecca S. Barna, Vice President/Group Publisher of the Internet Media Group, said: "These management moves reflect our commitment to bring users the best information and advertisers the most targeted and cost-effective buy in technology online."
PRINCETON MEDIA GROUP INC. ANNOUNCES NEW CHIEF FINANCIAL OFFICER
PALM BEACH, Fla.--(BUSINESS WIRE)--Nov. 10, 1997--Princeton Media Group Inc. (Nasdaq:PMGIF) announced Monday that Hugo Barreca has been named the new chief financial officer for the company. Robert F. Kendall, formerly CFO, has become senior vice president of Finance. Barreca, who joined the company in September 1997, brings over 20 years of experience in the publishing industry, including senior positions with Time Inc., The New York Times Magazine Group and Gruner+Jahr USA Publishing. His responsibilities have included strategic business planning, financial planning and management, contract negotiations and purchasing, and computer systems development, including inventory database systems, financial management systems, logistic models and telecommunications systems. Barreca received an M.B.A. from New York University and a J.D. from Fordham School of Law, as well as other academic degrees and professional honors. Barreca will be responsible for the company's overall financial planning and management. He will also direct the company-wide consolidation of current operations and implement the company's expansion program through continued acquisitions of related business operations in publishing, advertising, websites and other related media.
Thomson Corp.: Publishing, Travel Units Help Boost Earnings 14%
Stephen King And Simon & Schuster In Book Deal
Knight-Ridder Sells Newspaper
Ziff-Davis And Warner Publisher Services Announce Revolutionary Magazine Distribution Agreement
Golden Books Family Entertainment
Avon Products, Inc. And Hachette Filipacchi
Idg Books Worldwide To Buy Mis: And M&T Computer Presses From Henry Holt
Oracle 8 Selected As Database To Fuel The Unisys Hermes Publishing System
Amazon.Com And @Home Network Sign Multi-Year Agreement To Sell Books Over The @Home Service
Oxford University Press And Imark Announce Electronic Publishing Agreement
CMP Media Expands Internet Management Team With The Addition Of Two New Positions
Princeton Media Group Inc. Announces New Chief Financial Officer
RECENT NEWS:
THOMSON CORP.: PUBLISHING, TRAVEL UNITS HELP BOOST EARNINGS 14%
Thomson Corp., buoyed by higher earnings from its publishing and travel operations, reported a 14% increase in third-quarter earnings and boosted its quarterly dividend by 6.9%. Thomson, Toronto, reported third-quarter earnings of US$342 million, or 56 cents a share, compared with $301 million, or 50 cents a share, a year earlier. Revenue was $2.74 billion, up 10% from $2.49 billion a year earlier. Thomson, which has interests in newspapers, publishing, databases and travel services, increased its quarterly dividend to 15.5 U.S. cents a share from 14.5 cents a share. Thomson rose 1.50 Canadian dollars (US$1.07) to C$35.50 in Toronto Stock Exchange trading.
WSJviaNewsEDGE Copyright (c) 1997 Dow Jones and Company, Inc. Received via NewsEDGE from Desktop Data, Inc.: 11/07/97 02:15:18
STEPHEN KING AND SIMON & SCHUSTER IN BOOK DEAL
Best-selling author Stephen King and Simon & Schuster struck a tentative deal Thursday to publish his novel ``Bag of Bones'' in an unconventional arrangement that will give the horror writer a share of nearly 50 percent of the profits. The negotiations came after King's highly unusual public search for a new company to replace Viking, his longtime publisher. His original $17 million asking price prompted much complaining in the publishing industry that such a conventional deal was a money-losing proposition. But Thursday, Simon & Schuster, a unit of Viacom Inc., announced a three-book ``co-publishing venture'' with King that will give him a share of the profits and of the risks and responsibilities for pricing, marketing and packaging his books. King, who was traveling to New York for a meeting with Simon & Schuster on the agreement, could not be reached for comment. According to a person close to the negotiations, King will share in almost 50 percent of the profits and will receive an advance that is small by his standards - almost $2 million a book. He will not receive bonuses or royalties. The three books are ``Bag of Bones,'' a collection of short stories and a work on the craft of writing.
NYTviaNewsEDGE Copyright (c) 1997 The New York Times Co.
KNIGHT-RIDDER SELLS NEWSPAPER
MIAMI – Knight-Ridder Inc. said it sold the Long Beach Press-Telegram to Garden State Newspapers Inc. for an undisclosed price. The sale completes Knight-Ridder's previously announced plan to sell five newspapers. Garden State Newspapers is a unit of Affiliated Newspapers Inc., Denver.
WSJviaNewsEDGE Copyright (c) 1997 Dow Jones and Company, Inc. Received via NewsEDGE from Desktop Data, Inc.: 11/10/97 02:08:13
ZIFF-DAVIS AND WARNER PUBLISHER SERVICES ANNOUNCE REVOLUTIONARY MAGAZINE DISTRIBUTION AGREEMENT
Entire Stable of Ziff-Davis Magazines to Receive Increased Distribution and Exposure at the Retail Level
NEW YORK, Nov. 11 /PRNewswire/ -- Ziff-Davis, a SOFTBANK Company, and Warner Publisher Services (WPS), a TimeWarner Company, announced today an agreement whereby the entire 13-title line of Ziff-Davis paid-circulation magazines in the U.S. will be distributed nationally by WPS. In announcing the new agreement, Claude Sheer, President, ZD Publishing, and Dan Rubin, President of WPS, emphasized the unique benefits of this new publishing partnership. Rubin said, "We're combining the strengths of three unique industry leaders: Ziff-Davis, the world's leading publisher of computer and video game magazines; the vast distribution capabilities of WPS; plus retail-level merchandising and marketing support from Time Distribution Services. We believe it's a fortuitous combination of resources that will help raise Ziff- Davis' already strong, newsstand sales to new heights." In discussing the agreement, James Gerth, ZD Single Copy Sales and Marketing Director, explained: "This new arrangement will allow us to more efficiently serve both the wholesaler and retailer communities. Given the big changes we've seen recently in the newsstand environment, we're especially pleased, and optimistic, now that this unique agreement is in place." Sheer added, "While Ziff-Davis has seen tremendous growth in its Internet business, growth for all ZD print products remains strong, including those for our flagship, PC Magazine, as well as for Computer Shopper, PC Computing, and Electronic Gaming Monthly." Sheer continued, "Magazines are a vital part of our business, and newsstand sales are integral to our publishing plans. We believe this new agreement will carry us to even greater growth in this important area. That's good news for us, and also for our readers, advertisers, and the wholesalers and retailers who handle our publications."
SOURCE Ziff Davis
Business Brief -- GOLDEN BOOKS FAMILY ENTERTAINMENT: Loss Narrows Amid Decline In Costs From Restructuring
Golden Books Family Entertainment Inc. reported that its third-quarter net loss narrowed, in part because of a decrease in costs related to a continuing restructuring program. The New York company posted a net loss of $17.9 million, or 76 cents a share, compared with a loss of $96.8 million, or $4.29 a share, a year earlier. Results for the latest quarter include a restructuring charge of $3.3 million, or 12 cents a share. Results for the year-earlier period include charges of $80.1 million, or $3.01 a share, largely for restructuring. Revenue decreased 21% to $53.3 million from $67.5 million. The company's main operations include children's publishing and entertainment products for children and families.
WSJviaNewsEDGE Copyright (c) 1997 Dow Jones and Company, Inc. Received via NewsEDGE from Desktop Data, Inc.: 11/12/97 02:15:53
AVON PRODUCTS, INC. AND HACHETTE FILIPACCHI JOIN TO LAUNCH NEW MAGAZINE DISTRIBUTION THROUGH AVON REPRESENTATIVES AND NEWSSTAND
NEW YORK, Nov. 14 /PRNewswire/ -- Avon Products, Inc. (NYSE: AVP) and Hachette Filipacchi Magazines today announced that they will launch a new magazine for women. The two companies -- global leaders in their respective fields -- will together publish Athena: Common Sense, Uncommon Style, designed to provide insightful information about beauty, well-being, and lifestyle for women. "Athena represents a new dimension in publishing," explains David Pecker, President and Chief Executive Officer, Hachette Filipacchi Magazines. "The magazine will deliver the spirit of beauty and high fashion along with accessible information and service. We are thrilled to be in this unique joint publishing venture with Avon."
Debuting in the U.S. with the May/June launch issue in April 1998, Athena is set for a bimonthly schedule. The publication will be initially distributed through the 440,000 U.S. Avon Sales Representatives, as well as newsstands. Cover price will be $3.50, with special pricing for Avon Representatives and their customers. Future global opportunities will be explored to bring Athena to other markets around the world, tapping the powerful distribution network of more than 2 million Avon Sales Representatives worldwide. In both domestic and global markets, Avon's key objective for Athena is to strengthen the company's image and role as a beauty authority. Avon will be the exclusive beauty advertiser in Athena, but the publication will be open to all advertisers in non-competitive categories, such as consumer packaged goods, travel, and automotive, who wish to reach the Athena reader.
Hachette Filipacchi Magazines currently publishes 29 consumer titles reaching over 47 million readers, including American Photo, Audio, Best Selling Home Plans, Boating, Car and Driver, Car Stereo Review, Cycle World, ELLE, ELLE Decor, Family Life, Flying, George, HOME, Metropolitan Home, Popular Photography, Premiers, Road & Track, Showboats International, Stereo review, TopModel, Travel Holiday, Video, Woman's Day, and Eating Well, as well as a number of quarterlies and special publications. HFM is a wholly-owned subsidiary of Hachette Filipacchi Medias, the world's largest magazine publisher, with diverse holdings in printing, newspaper, film production, and outdoor advertising.
IDG BOOKS WORLDWIDE TO BUY MIS: AND M&T COMPUTER PRESSES FROM HENRY HOLT
FOSTER CITY, Calif., Nov. 12 /PRNewswire/ -- IDG Books Worldwide, Inc. has signed a letter of intent to purchase MIS: Press and M&T Books from Henry Holt Publishers in New York for an undisclosed sum. The deal takes Holt out of trade computer book publishing and reinforces IDG Books Worldwide's leadership in technology publishing. IDG Books Worldwide, Inc., founded in 1990, is the number two computer book publisher with total FY1997 gross revenues in excess of $150 million. Final terms of the agreement are expected by the end of this month.
IDG Books Worldwide President and Publisher Steven Berkowitz characterized the acquisition as a strategic move in an industry that is seeing more consolidation. "MIS: Press and M&T Books produce well-written books and series that are in keeping with our commitment to publishing high quality editorial content. Our strengths in building and marketing brands will help us to expand our market share in the tightening book publishing arena."
IDG Books Worldwide, best known for its 40 million selling ... For Dummies(R) series, has made branding a phenomenon in book publishing. The company has created highly identifiable, successful brands for users ranging from beginners using the ...Simplified (R) 4-color illustrated books to high- end professionals using the certification series for Novell and Microsoft engineers and system administrators. IDG Books Worldwide, Inc. is a subsidiary of IDG, the world's leading IT media, research and exposition company. IDG publishes more than 285 computer magazines and newspapers and 500 book titles and offers the largest network of technology specific sites around the world, located at http://www.idg.net, which comprises more than 170 targeted Web sites in 45 countries. IDG is also a leading producer of 110 computer-related expositions worldwide, and provides IT market analysis through 49 offices in 41 countries worldwide. Company information is available at http://www.idg.com. Information about IDG Books is available at http://www.idgbooks.com. SOURCE IDG Books Worldwide, Inc.
ORACLE 8 SELECTED AS DATABASE TO FUEL THE UNISYS HERMES PUBLISHING SYSTEM
REDWOOD SHORES, Calif., Nov. 12 /PRNewswire/ -- Oracle Corp. (Nasdaq: ORCL) and Unisys (NYSE: UIS), a leading newspaper-system supplier, today announced they will deliver an integrated system, based on Sun Microsystem's Solaris platform, that answers the increasingly complex information technology needs of the publishing industry. Unisys has chosen Oracle8(TM) to power the Unix-Based version of Hermes, its global, integrated publishing system. Hermes will meet user requirements for scalability, reliability and tight-system integration in order to redefine workflow, reduce costs and help in the migration to electronic publishing. This combination will enable publishers to streamline their business from editorial, production and archiving processes to management of all news information electronically to support for hundreds of concurrent users.
"The core competencies of Oracle8 -- the ability to handle more data, support more users, deliver results faster and at a lower price - directly address the needs being expressed in the publishing industry today," said Polly Sumner, senior vice president of Communications Industry, Oracle Corp. "Unisys' Hermes system with Oracle8 as the database backbone provides publishers with the ability to globally manage and deliver information for both traditional and electronic publishing mediums."
"For publishing groups that are looking to reengineer their publishing systems and to reengineer their productions processes, the Unisys Publishing Solutions offer global, scaleable, integrated applications," said Franco Giglio, director of Publishing Center of Excellence Systems, Unisys. "Oracle8 provides the database engine needed to support the scalability and reliability requirements of our customers." The Hermes publishing system, a major component of the Unisys Publishing Solutions, has been expressly designed for metropolitan newspapers which face large organizational issues and complex production processes in highly mission-critical environments. Hermes is applicable for both text-driven and layout-driven publications, as it can support several editorial organizations' needs for design layout, text and headline editing, image processing, ad display creation, page planning, production tracking and full-page output.
ONLINE/INTERNET NEWS:
AMAZON.COM AND @HOME NETWORK SIGN MULTI-YEAR AGREEMENT TO SELL BOOKS OVER THE @HOME SERVICE
SEATTLE, and REDWOOD CITY, Calif., Nov. 10 /PRNewswire/ -- Amazon.com, Inc. (Nasdaq: AMZN), the leading online book retailer, and @Home Network (Nasdaq: ATHM), the leader in high-speed Internet services via the cable infrastructure, today announced a multi-year agreement whereby Amazon.com (www.amazon.com) will be the premier bookseller throughout the @Home service. @Home users will have high-speed, direct access to browse and purchase books from Amazon.com's catalog of more than 2.5 million books. These services are expected to be integrated into @Home's service by the end of the year. This agreement marks the first time Amazon.com has formed a strategic alliance with a cable Internet service provider.
Based in Redwood City, California, @Home Network (http://www.home.net) distributes high-speed interactive services to residences and businesses using its own network architecture and a variety of transport options including the cable industry's hybrid-fiber coaxial infrastructure. The cable connection provides users significant increases in speed over conventional Internet services. Leveraging the "always on" attributes of cable, @Home allows for unique multimedia applications that go beyond current Web experiences. Since its founding in May 1995, @Home Network has reached affiliate agreements with eight leading cable companies in North America, including Tele-Communications Inc., Cablevision Systems Corp., Comcast Corporation , Cox Communications, InterMedia Partners, Marcus Cable, Rogers Cablesystems Limited, and Shaw Communications
OXFORD UNIVERSITY PRESS AND IMARK ANNOUNCE ELECTRONIC PUBLISHING AGREEMENT
RESTON, Va.--(BUSINESS WIRE)--Nov. 6, 1997--Imark Technologies Inc. (NASDAQ: MAXX) a leading provider of electronic commerce solutions to the information industry, announces an agreement with Oxford University Press USA (OUP) to develop an e-commerce version of "The Computational Intelligence Library" to be available commercially in 1998. Through this collaboration, OUP will employ Imark's award winning NET-MAX(TM) Internet billing system, which enables information providers to outsource the complete development and maintenance of all electronic commerce functions. Imark's NET-MAX metering and billing system is the winner of the 1997 Information Industry Association Award for the Best Enabling Technology of the Year.
The Computational Intelligence Library, a joint publication of OUP and the Institute of Physics Publishing, is a comprehensive reference tool for computer scientists, engineers, psychologists, mathematicians, and physicists, providing a continuously updated overview of the dynamic field of Computational Intelligence. The Computational Library is positioned as an all-encompassing reference that collates research findings from various sources into one authoritative work. Imark will assist OUP in optimizing the online version of the library, designing an online customer registration system with tracking and reporting of customer usage, and advising on possible future enhancements to the pricing model. "We are very pleased to enter into this exciting new relationship with Imark Technologies. What Imark offers Oxford University Press is the ability to bring a niche product to market quickly and cost-effectively with an award winning e-commerce system to back it up" said Royalynn O'Connor, Online product director at Oxford University Press-USA.
PEOPLE ON THE MOVE:
CMP MEDIA EXPANDS INTERNET MANAGEMENT TEAM WITH THE ADDITION OF TWO NEW POSITIONS
MANHASSET, N.Y.--(BUSINESS WIRE)--Nov. 11, 1997-- CMP Media's (Nasdaq: CMPX) rapidly-growing CMPnet, the technology network at http://www.CMPnet.com, has created two new management positions and concurrently named a new Associate Publisher for sales and a new Director of Marketing. Chris Tice, most recently CMPnet's Associate Publisher, Sales and Marketing, has assumed the new position of Associate Publisher, Business Development and will retain responsibility for marketing and research. Meryl Otis, previously Associate Publisher for NetGuide Magazine, has been named Associate Publisher, Sales for CMPnet. Aimee Levine joins CMPnet from Time Warner as Director of Marketing. Helen Flaum, formerly a Director of Information Technology in CMP's corporate IT department, has moved over to the Internet Media Group as Director of Operations for the group, which produces CMPnet. In announcing the staffing changes, Rebecca S. Barna, Vice President/Group Publisher of the Internet Media Group, said: "These management moves reflect our commitment to bring users the best information and advertisers the most targeted and cost-effective buy in technology online."
PRINCETON MEDIA GROUP INC. ANNOUNCES NEW CHIEF FINANCIAL OFFICER
PALM BEACH, Fla.--(BUSINESS WIRE)--Nov. 10, 1997--Princeton Media Group Inc. (Nasdaq:PMGIF) announced Monday that Hugo Barreca has been named the new chief financial officer for the company. Robert F. Kendall, formerly CFO, has become senior vice president of Finance. Barreca, who joined the company in September 1997, brings over 20 years of experience in the publishing industry, including senior positions with Time Inc., The New York Times Magazine Group and Gruner+Jahr USA Publishing. His responsibilities have included strategic business planning, financial planning and management, contract negotiations and purchasing, and computer systems development, including inventory database systems, financial management systems, logistic models and telecommunications systems. Barreca received an M.B.A. from New York University and a J.D. from Fordham School of Law, as well as other academic degrees and professional honors. Barreca will be responsible for the company's overall financial planning and management. He will also direct the company-wide consolidation of current operations and implement the company's expansion program through continued acquisitions of related business operations in publishing, advertising, websites and other related media.
Friday, November 07, 1997
11/7/97: MacmillanUK, Primedia, Reuters, Amazon.com
Summary:
Macmillan, Ltd (UK) name new CEO:
Newspaper Circulation Figures Down
Outlook for Contract (Magazine) Publishing
Expectations for Professional Publishing
K-III Begins New Era; Reports Record Third Quarter; Announces Name Change and Growth Strategy
Charles Siegel Named Chief Operating Officer of K-III Consumer Magazine Division Search Continues for President of Media Group:
Another Celebrity Book Bites (the Dust)
News Corp. Posts a 9.5% Profit Boost For 1st Quarter, Topping Expectations
The Mouth Strikes…TED TURNER
Reuters and Chutzpah:
Amazon.com biggest Penguin Customer
Publish Your Own Book
Golden Books and Disney Licensing
Leading Online News Delivery Services Merge as NewsEdge
Interactive Journal Exceeds 150,000 Mark In Paid Subscribers:
Technology Brief: Easing of Indian Internet Rules
Recent News:
Macmillan, Ltd (UK) name new CEO:
RICHARD CHARKIN, former chief executive of Reed International Books, is to return to mainstream publishing as chief executive of Macmillan, Ltd. Mr Charkin, who will be responsible for all Macmillan companies apart from St. Martin's Press and Macmillan Magazines, succeeds Nicholas Byam Shaw, who is 64 and has worked at Macmillan for 34 years. Mr Byam Shaw will act as deputy chairman of the company and Mr Charkin and John Sargent, chief executive of St. Martin's Press and Ray Barker, managing director of Macmillan Magazines, will report to him. Dieter von Holtzbrinck, of Holtzbrinck, the privately-owned German publishers that bought Macmillan two and a half years ago, will become chairman of Macmillan. (The London Times)
Newspaper Circulation Figures Down:
Circulation figures released on Monday show Sunday sales dropping at many of the biggest Sunday papers. Five of the top eight Sunday editions showed declines according to ABC figures -three of them, The Washington Post, NY Daily News and The Chicago Tribune showed large declines. The Daily News sold 80,000 fewer newspapers for the prior six months than in the year before. Sunday circulation is important to newspapers because a Sunday paper reaps about three times the advertising revenue of a weekday paper. The Daily News, which has the country's sixth-largest weekday circulation, attributed the drop in Sunday readership to a price increase in April, to $1.50 from $1. (Editor and Publisher)
Outlook for Contract (Magazine) Publishing:
USA Today reported on the rise in the number of "lifestyle" magazines with "splashy graphics" that are sponsored by companies like Mercedes-Benz (Momentum) or Philip Morris (Unlimited) Land Rover (LandRover Journal). According to USA Today, "These magazines are a booming business for mainstream publishers. Magazine Publishers of America estimates that contract publishing generates more than $1.3 billion in annual revenue for publishers. There are some ethical issues as these corporate magazines increasingly look like independent magazines. Also, the report says, "Media watchdogs grumble about cozy relations between marketers and publishers." (USA Today, 12B, Nov. 1997)
Expectations for Professional Publishing:
The latest media industry mega-deal between Dutch giant Wolters Kluwer and Reed Elsevier, two of the leading publishers in legal, medical, scientific/technical and business markets, is another sign of strength in one of the segments of the publishing industry showing growth in 1997. Sales of professional books, journals, newsletters and online data are projected to grow 6.3 percent to $11.28 billion in 1997, according to Publishing for Professional Markets: 1997-98: Review, Trends and Forecast, the latest research report from Cowles/Simba Information.
Trade book markets are projected to remain flat this year. The industry reached an estimated $10.62 billion in 1996, up 6 percent from 1995, according to the report. Thomson Corp. was the leading professional publisher, with worldwide sales from professional information at an estimated $3.39 billion in 1996. Legal publishing remains the largest segment of the professional publishing industry, with revenues projected to reach $4.24 billion in 1997, up 5.9 percent from 1996. According to the report, books, online and newsletter/looseleaf are the leading delivery methods for legal information and Thomson is the leading legal publisher-at least until the Reed Elsevier/Wolters Kluwer merger is completed early next year. Scientific/technical is the second largest segment of the industry, followed by medical and business. Journals represent the largest medium for sci/tech information, while books account for the largest portion of medical information sales.
Online and books dominate the business segment. Books are the leading overall medium for professional information, accounting for $4.23 billion, or 37.5 percent of all sales in 1997. Thomson Corp., which generated $725 million in professional book revenues and Times Mirror, which generated $530.4 million, were the leading publishers of professional books in 1996. Journals represented the second-largest segment of the professional publishing industry, followed by online, newsletters/looseleafs, directories and "other" media, which includes some CD-ROM revenues and revenues from miscellaneous media, such as audio and video. The professional publishing industry is projected to grow 6 percent in 1998, 5.8 percent in 1999 and 5.9 percent in 2000, according to the report.
The legal segment is forecast to remain the largest and books will continue to be the leading medium for professional information over the next three years. However, online is forecast to surpass journals as the second-largest medium by 1999. Publishing for Professional Markets, 1997-98 includes an overall ranking of worldwide revenues for leading professional publishers, rankings for the leading publishers in each of the four industry segments-legal, scientific/technical, medical and business, as well as rankings of leading publishers by each major professional publishing medium-books, journals, directories, newsletters/looseleafs and online. In addition, the report provides revenue forecasts through 2000 for each of the four market segments and each major medium and detailed profiles for 34 leading professional and university press publishers. The report costs and can be obtained by calling Bill MacRae at Cowles Simba, or by e-mail at bill_macrae@simbanet.com. Business Editors STAMFORD, CT--(BUSINESS WIRE)--Nov. 3, 1997--
K-III Begins New Era; Reports Record Third Quarter; Announces Name Change and Growth Strategy:
NEW YORK, Oct. 30 /PRNewswire/ -- K-III Communications Corporation (NYSE: KCC), today reported that third quarter sales and EBITDA from continuing operations each increased 15.5% setting new records. The parent company of such prime media brands as Seventeen, Soap Opera Digest, Weekly Reader, Channel One, Ward's Automotive and The World Almanac, also reaffirmed its growth strategy: focus on its fastest growing businesses, complete certain divestitures and change the Company's name to PRIMEDIA. This quarter, the Company begins presenting results from continuing operations which exclude businesses that have been, or will be, divested. "The continuing operations results show our true earnings power," said William Reilly, chairman and chief executive officer. "As just one measure, EBITDA margins were more than two percentage points higher in the nine-month period when the divestitures are removed." Results from Continuing Operations (Excluding businesses divested in or held for sale)
($ millions) 3Q97 % Change 3Q96 9 mos %Change 9 mos 96
Sales $305.7 15.5% $264.8 $884.9 16.1% $762.0
EBITDA $63.4 15.5% $54.9 $192.3 15.1% $167.0
Margin 20.7% 20.7% 21.7% 21.9%
Charles Siegel Named Chief Operating Officer of K-III Consumer Magazine Division Search Continues for President of Media Group:
NEW YORK, Oct. 22 /PRNewswire/ -- William F. Reilly, chairman and CEO of K-III Communications (NYSE: KCC) announced today that Charles Siegel, 51, has been named to the newly created post of chief operating officer for its consumer magazine division. Siegel has held several general management positions at K-III, Simon & Schuster, and Macmillan Publishing Company. Most recently Siegel has been president and CEO of K-III's Newbridge Communications. He will manage the team responsible for the 24 consumer magazines in the K-III Consumer Magazine stable. K-III's consumer magazines include New York, Chicago, Seventeen, Automobile, American Baby, Modern Bride, Soap Opera Digest and Soap Opera Weekly. Siegel will report to K-III chairman and CEO Reilly until a replacement is named for the late Harry McQuillen who was president of the K-III Media Group. A search for a President of the K-III Media Group is still underway. learning and workplace learning), and information (consumer directories and business directories).
Another Celebrity Book Bites (the Dust):
Now you can get Paula Barbieri's book at a steep discount--$9.95, instead of the $23.95 list price. And in plenty of time for stocking stuffing. Barbieri's "The Other Woman," a memoir of her relationship with O.J. Simpson, arrived to a thunderous ho-hum recently, despite a $3-million advance that had been paid to the former model by a confident Little, Brown and Co. Rather than have to take back thousands and thousands of unsold copies, the publisher is offering booksellers a credit on each book sold, allowing them to slash the price. In the business, it's known as "remaindering a book in place"--a polite description for a book that is fizzling. Cowles Business Media
News Corp. Posts a 9.5% Profit Boost For 1st Quarter, Topping Expectations ---- By John Lippman:
Rupert Murdoch's News Corp. posted a better-than-expected 9.5% profit increase for its fiscal first quarter, citing a robust U.S. television-advertising market, and sounded an upbeat note about the current quarter ending Dec. 31. But per-share results fell, reflecting an increase in shares outstanding at the acquisitive Australian company. And pretax operating profit fell 43% at the Filmed Entertainment unit, as the Fox film and TV studio faced a tough comparison with a year-earlier quarter fattened by megahit "Independence Day." For the first quarter, ended Sept. 30, Australia-based News Corp. reported that net income rose 9.5% to US$243 million, or 26 cents an American depository receipt, from $222 million, or 27 cents an ADR, a year earlier. Revenue for the quarter increased 16% to $2.9 billion while cash flow -- earnings before interest, taxes, depreciation and amortization -- for the media giant rose 23% to $436 million. Operating profit before special items was up 7% to $240 million. The Wall Street Journal via Dow Jones
The Mouth Strikes…
TED TURNER, the founder of Cable News Network, yesterday reignited the personal feud with Rupert Murdoch by once again likening the chairman of The News Corporation to Hitler. Mr Turner, in London with his wife, Jane Fonda, was challenged yesterday by William Shawcross, author of an unauthorised biography of Mr Murdoch, whether it was true that he had likened the News Corp chairman to Hitler at a lunch on Monday. "I didn't use that word," said Mr Turner, who added that he had instead likened Mr Murdoch to "the former leader of the Third Reich". Mr Shawcross asked the American media mogul, who is now a vice-president of Time Warner, whether it was "appropriate for a businessman like you who pretends and purports to be working for the benefit of mankind to compare a competitor to Hitler?" "If the shoe fits, wear it," replied Mr Turner, who was in turn accused of a "stupid and cheap shot" by Mr Shawcross. Raymond Snoddy - London Times
Reuters and Chutzpah:
REUTERS, the online information company, is to charge many of its institutional clients for correcting the millennium bug that threatens to paralyze its equipment in the year 2000. The company, which yesterday detailed its approach to the problem, said that clients who need their computers changed overnight or at the weekend could be sent a bill for the privilege. The move marks a distinct break from the industry norm, where companies usually agree that their customers should not be asked to pay for the supplier's failure to plan for the date change. Raymond Snoddy - The London Times.
Amazon.com biggest Penguin Customer:
THE Penguin Group, the publisher owned by Pearson, yesterday said that Amazon.com, the Internet bookstore, may soon be Penguin's largest customer. Michael Lynton, Penguin chairman and chief executive, said that Amazon bought $1 million of books from Penguin last year. This year's total looked likely to be $10 million, and the growth rate was 40 per cent a quarter. Mr Lynton said: "If this current growth continues in the next two to three years, they will probably be our largest customer." More than 90 per cent of Penguin's US backlist sales come from Amazon. The enormous Internet backlist sales, Mr Lynton said, "could be of huge importance to us".
Golden Books and Disney Licensing:
Disney Licensing Deal Will Cost Golden Books At Least $47.7M (Simba/Book Publishing Report) Golden Books Family Entertainment will pay the Walt Disney Co. at least $47.7 million in royalties over the next four years for its recently extended licensing agreement, according to a document the company filed recently with the Securities and Exchange Commission. Golden Books has agreed to pay at least $7.4 million for the period between Jan. 1 and Sept. 30, 1998, then $11.7 million in the second, $13.3 million in the third and $15.3 million in the fourth year of the agreement, the document said. Cowles Business Media
Reed Elsevier Seeking Content Acquisitions:
Calling content "the crown jewel," Dutch multimedia publisher Reed-Elsevier said it is considering snapping up new content partners. Chatting with executives at a Financial Times publishing conference, Reed-Elsevier chairman Nigel Stapleton countered rumors that his firm was on the hunt to buy a software firm, saying "the thing that we're most looking to acquire is more and more content." Reed-Elsevier will be going through a little consolidation itself should its prospective merger with Amsterdam-based publishing giant Wolters Kluwer NV go through. The London Times.
Online Publishing:
Publish Your Own Book:
Nov. 3, 1997-- 1stBooks Champions Aspiring Authors, Bypassing "Gatekeepers" and makes it possible for authors to "publish" their work and still retain full legal ownership and rights. For less than $500, they will digitize an author's book and publish it on the Web, along with a "digital book jacket." This "virtual cover" offers the prospective reader much the same information as a traditional book jacket: a cover design or illustration, a summary of the book and a biographical sketch of the author. There is even a free two or three page excerpt from the text itself, for the potential buyer who might like to leaf through a few virtual pages before making a purchase. "A typical book in the library can be purchased and downloaded for $5.95 to $9.95, less than the cost of most paperbacks. A few highly technical books are offered for as much as $25.00. As hardbacks, they would probably cost $50 or more," The buyer can download the book electronically, and typically is offered a choice of formats. For authors who have gone the subsidized publishing route, the site also offers the opportunity of selling traditional bound copies of their books. The site also offers authors full-service accounting and record keeping, as well as detailed marketing, customer tracking and prospect-to-sale ratio information. And authors receive a commission or royalty of 40% of the selling price, less any credit card fees, on each "book" sold.
Leading Online News Delivery Services Merge as NewsEdge:
Established electronic news aggregators Desktop Data Inc. and Individual Inc., both of Burlington, MA, are merging companies and services in a stock swap deal to be closed in first-quarter 1998. The new company will be titled NewsEDGE Corp. -- named after the flagship news delivery service of Desktop Data -- and headed by Desktop Data founder and CEO Donald L. McLagan. Combined, the companies drew $75 million in revenues during the year ending Sept. 30, 1997 -- a 35% growth from the year prior.
Interactive Journal Exceeds 150,000 Mark In Paid Subscribers:
Dow Jones & Co. said The Wall Street Journal Interactive Edition has attracted more than 150,000 paid subscribers just over a year after it began charging for access to its site on the World Wide Web. The Interactive Journal has the largest circulation of any paid-subscription site on the Web and is among the top sites for generating advertising revenue on the Internet, according to Thomas Baker, business director of the Interactive Journal.
Technology Brief: Easing of Indian Internet Rules:
The Indian government said it has lifted all restrictions on the number of private Internet-service providers allowed to operate in the state-controlled Internet market and on the fees they charge subscribers. The companies, however, will still have to obtain government licenses to operate. The government said the aim of the move is to bring Internet connections to as many as two million Indians within two or three years, from 40,000 now. Until now, the state-run Videsh Sanchar Nigam Ltd. has controlled Internet access in New Delhi, Bombay, Calcutta, Madras, Bangalore and Pune, while the Department of Telecommunications provided access in the rest of the country. AP-Dow Jones The Asian Wall Street Journal via Dow Jones
Macmillan, Ltd (UK) name new CEO:
Newspaper Circulation Figures Down
Outlook for Contract (Magazine) Publishing
Expectations for Professional Publishing
K-III Begins New Era; Reports Record Third Quarter; Announces Name Change and Growth Strategy
Charles Siegel Named Chief Operating Officer of K-III Consumer Magazine Division Search Continues for President of Media Group:
Another Celebrity Book Bites (the Dust)
News Corp. Posts a 9.5% Profit Boost For 1st Quarter, Topping Expectations
The Mouth Strikes…TED TURNER
Reuters and Chutzpah:
Amazon.com biggest Penguin Customer
Publish Your Own Book
Golden Books and Disney Licensing
Leading Online News Delivery Services Merge as NewsEdge
Interactive Journal Exceeds 150,000 Mark In Paid Subscribers:
Technology Brief: Easing of Indian Internet Rules
Recent News:
Macmillan, Ltd (UK) name new CEO:
RICHARD CHARKIN, former chief executive of Reed International Books, is to return to mainstream publishing as chief executive of Macmillan, Ltd. Mr Charkin, who will be responsible for all Macmillan companies apart from St. Martin's Press and Macmillan Magazines, succeeds Nicholas Byam Shaw, who is 64 and has worked at Macmillan for 34 years. Mr Byam Shaw will act as deputy chairman of the company and Mr Charkin and John Sargent, chief executive of St. Martin's Press and Ray Barker, managing director of Macmillan Magazines, will report to him. Dieter von Holtzbrinck, of Holtzbrinck, the privately-owned German publishers that bought Macmillan two and a half years ago, will become chairman of Macmillan. (The London Times)
Newspaper Circulation Figures Down:
Circulation figures released on Monday show Sunday sales dropping at many of the biggest Sunday papers. Five of the top eight Sunday editions showed declines according to ABC figures -three of them, The Washington Post, NY Daily News and The Chicago Tribune showed large declines. The Daily News sold 80,000 fewer newspapers for the prior six months than in the year before. Sunday circulation is important to newspapers because a Sunday paper reaps about three times the advertising revenue of a weekday paper. The Daily News, which has the country's sixth-largest weekday circulation, attributed the drop in Sunday readership to a price increase in April, to $1.50 from $1. (Editor and Publisher)
Outlook for Contract (Magazine) Publishing:
USA Today reported on the rise in the number of "lifestyle" magazines with "splashy graphics" that are sponsored by companies like Mercedes-Benz (Momentum) or Philip Morris (Unlimited) Land Rover (LandRover Journal). According to USA Today, "These magazines are a booming business for mainstream publishers. Magazine Publishers of America estimates that contract publishing generates more than $1.3 billion in annual revenue for publishers. There are some ethical issues as these corporate magazines increasingly look like independent magazines. Also, the report says, "Media watchdogs grumble about cozy relations between marketers and publishers." (USA Today, 12B, Nov. 1997)
Expectations for Professional Publishing:
The latest media industry mega-deal between Dutch giant Wolters Kluwer and Reed Elsevier, two of the leading publishers in legal, medical, scientific/technical and business markets, is another sign of strength in one of the segments of the publishing industry showing growth in 1997. Sales of professional books, journals, newsletters and online data are projected to grow 6.3 percent to $11.28 billion in 1997, according to Publishing for Professional Markets: 1997-98: Review, Trends and Forecast, the latest research report from Cowles/Simba Information.
Trade book markets are projected to remain flat this year. The industry reached an estimated $10.62 billion in 1996, up 6 percent from 1995, according to the report. Thomson Corp. was the leading professional publisher, with worldwide sales from professional information at an estimated $3.39 billion in 1996. Legal publishing remains the largest segment of the professional publishing industry, with revenues projected to reach $4.24 billion in 1997, up 5.9 percent from 1996. According to the report, books, online and newsletter/looseleaf are the leading delivery methods for legal information and Thomson is the leading legal publisher-at least until the Reed Elsevier/Wolters Kluwer merger is completed early next year. Scientific/technical is the second largest segment of the industry, followed by medical and business. Journals represent the largest medium for sci/tech information, while books account for the largest portion of medical information sales.
Online and books dominate the business segment. Books are the leading overall medium for professional information, accounting for $4.23 billion, or 37.5 percent of all sales in 1997. Thomson Corp., which generated $725 million in professional book revenues and Times Mirror, which generated $530.4 million, were the leading publishers of professional books in 1996. Journals represented the second-largest segment of the professional publishing industry, followed by online, newsletters/looseleafs, directories and "other" media, which includes some CD-ROM revenues and revenues from miscellaneous media, such as audio and video. The professional publishing industry is projected to grow 6 percent in 1998, 5.8 percent in 1999 and 5.9 percent in 2000, according to the report.
The legal segment is forecast to remain the largest and books will continue to be the leading medium for professional information over the next three years. However, online is forecast to surpass journals as the second-largest medium by 1999. Publishing for Professional Markets, 1997-98 includes an overall ranking of worldwide revenues for leading professional publishers, rankings for the leading publishers in each of the four industry segments-legal, scientific/technical, medical and business, as well as rankings of leading publishers by each major professional publishing medium-books, journals, directories, newsletters/looseleafs and online. In addition, the report provides revenue forecasts through 2000 for each of the four market segments and each major medium and detailed profiles for 34 leading professional and university press publishers. The report costs and can be obtained by calling Bill MacRae at Cowles Simba, or by e-mail at bill_macrae@simbanet.com. Business Editors STAMFORD, CT--(BUSINESS WIRE)--Nov. 3, 1997--
K-III Begins New Era; Reports Record Third Quarter; Announces Name Change and Growth Strategy:
NEW YORK, Oct. 30 /PRNewswire/ -- K-III Communications Corporation (NYSE: KCC), today reported that third quarter sales and EBITDA from continuing operations each increased 15.5% setting new records. The parent company of such prime media brands as Seventeen, Soap Opera Digest, Weekly Reader, Channel One, Ward's Automotive and The World Almanac, also reaffirmed its growth strategy: focus on its fastest growing businesses, complete certain divestitures and change the Company's name to PRIMEDIA. This quarter, the Company begins presenting results from continuing operations which exclude businesses that have been, or will be, divested. "The continuing operations results show our true earnings power," said William Reilly, chairman and chief executive officer. "As just one measure, EBITDA margins were more than two percentage points higher in the nine-month period when the divestitures are removed." Results from Continuing Operations (Excluding businesses divested in or held for sale)
($ millions) 3Q97 % Change 3Q96 9 mos %Change 9 mos 96
Sales $305.7 15.5% $264.8 $884.9 16.1% $762.0
EBITDA $63.4 15.5% $54.9 $192.3 15.1% $167.0
Margin 20.7% 20.7% 21.7% 21.9%
Charles Siegel Named Chief Operating Officer of K-III Consumer Magazine Division Search Continues for President of Media Group:
NEW YORK, Oct. 22 /PRNewswire/ -- William F. Reilly, chairman and CEO of K-III Communications (NYSE: KCC) announced today that Charles Siegel, 51, has been named to the newly created post of chief operating officer for its consumer magazine division. Siegel has held several general management positions at K-III, Simon & Schuster, and Macmillan Publishing Company. Most recently Siegel has been president and CEO of K-III's Newbridge Communications. He will manage the team responsible for the 24 consumer magazines in the K-III Consumer Magazine stable. K-III's consumer magazines include New York, Chicago, Seventeen, Automobile, American Baby, Modern Bride, Soap Opera Digest and Soap Opera Weekly. Siegel will report to K-III chairman and CEO Reilly until a replacement is named for the late Harry McQuillen who was president of the K-III Media Group. A search for a President of the K-III Media Group is still underway. learning and workplace learning), and information (consumer directories and business directories).
Another Celebrity Book Bites (the Dust):
Now you can get Paula Barbieri's book at a steep discount--$9.95, instead of the $23.95 list price. And in plenty of time for stocking stuffing. Barbieri's "The Other Woman," a memoir of her relationship with O.J. Simpson, arrived to a thunderous ho-hum recently, despite a $3-million advance that had been paid to the former model by a confident Little, Brown and Co. Rather than have to take back thousands and thousands of unsold copies, the publisher is offering booksellers a credit on each book sold, allowing them to slash the price. In the business, it's known as "remaindering a book in place"--a polite description for a book that is fizzling. Cowles Business Media
News Corp. Posts a 9.5% Profit Boost For 1st Quarter, Topping Expectations ---- By John Lippman:
Rupert Murdoch's News Corp. posted a better-than-expected 9.5% profit increase for its fiscal first quarter, citing a robust U.S. television-advertising market, and sounded an upbeat note about the current quarter ending Dec. 31. But per-share results fell, reflecting an increase in shares outstanding at the acquisitive Australian company. And pretax operating profit fell 43% at the Filmed Entertainment unit, as the Fox film and TV studio faced a tough comparison with a year-earlier quarter fattened by megahit "Independence Day." For the first quarter, ended Sept. 30, Australia-based News Corp. reported that net income rose 9.5% to US$243 million, or 26 cents an American depository receipt, from $222 million, or 27 cents an ADR, a year earlier. Revenue for the quarter increased 16% to $2.9 billion while cash flow -- earnings before interest, taxes, depreciation and amortization -- for the media giant rose 23% to $436 million. Operating profit before special items was up 7% to $240 million. The Wall Street Journal via Dow Jones
The Mouth Strikes…
TED TURNER, the founder of Cable News Network, yesterday reignited the personal feud with Rupert Murdoch by once again likening the chairman of The News Corporation to Hitler. Mr Turner, in London with his wife, Jane Fonda, was challenged yesterday by William Shawcross, author of an unauthorised biography of Mr Murdoch, whether it was true that he had likened the News Corp chairman to Hitler at a lunch on Monday. "I didn't use that word," said Mr Turner, who added that he had instead likened Mr Murdoch to "the former leader of the Third Reich". Mr Shawcross asked the American media mogul, who is now a vice-president of Time Warner, whether it was "appropriate for a businessman like you who pretends and purports to be working for the benefit of mankind to compare a competitor to Hitler?" "If the shoe fits, wear it," replied Mr Turner, who was in turn accused of a "stupid and cheap shot" by Mr Shawcross. Raymond Snoddy - London Times
Reuters and Chutzpah:
REUTERS, the online information company, is to charge many of its institutional clients for correcting the millennium bug that threatens to paralyze its equipment in the year 2000. The company, which yesterday detailed its approach to the problem, said that clients who need their computers changed overnight or at the weekend could be sent a bill for the privilege. The move marks a distinct break from the industry norm, where companies usually agree that their customers should not be asked to pay for the supplier's failure to plan for the date change. Raymond Snoddy - The London Times.
Amazon.com biggest Penguin Customer:
THE Penguin Group, the publisher owned by Pearson, yesterday said that Amazon.com, the Internet bookstore, may soon be Penguin's largest customer. Michael Lynton, Penguin chairman and chief executive, said that Amazon bought $1 million of books from Penguin last year. This year's total looked likely to be $10 million, and the growth rate was 40 per cent a quarter. Mr Lynton said: "If this current growth continues in the next two to three years, they will probably be our largest customer." More than 90 per cent of Penguin's US backlist sales come from Amazon. The enormous Internet backlist sales, Mr Lynton said, "could be of huge importance to us".
Golden Books and Disney Licensing:
Disney Licensing Deal Will Cost Golden Books At Least $47.7M (Simba/Book Publishing Report) Golden Books Family Entertainment will pay the Walt Disney Co. at least $47.7 million in royalties over the next four years for its recently extended licensing agreement, according to a document the company filed recently with the Securities and Exchange Commission. Golden Books has agreed to pay at least $7.4 million for the period between Jan. 1 and Sept. 30, 1998, then $11.7 million in the second, $13.3 million in the third and $15.3 million in the fourth year of the agreement, the document said. Cowles Business Media
Reed Elsevier Seeking Content Acquisitions:
Calling content "the crown jewel," Dutch multimedia publisher Reed-Elsevier said it is considering snapping up new content partners. Chatting with executives at a Financial Times publishing conference, Reed-Elsevier chairman Nigel Stapleton countered rumors that his firm was on the hunt to buy a software firm, saying "the thing that we're most looking to acquire is more and more content." Reed-Elsevier will be going through a little consolidation itself should its prospective merger with Amsterdam-based publishing giant Wolters Kluwer NV go through. The London Times.
Online Publishing:
Publish Your Own Book:
Nov. 3, 1997-- 1stBooks Champions Aspiring Authors, Bypassing "Gatekeepers" and makes it possible for authors to "publish" their work and still retain full legal ownership and rights. For less than $500, they will digitize an author's book and publish it on the Web, along with a "digital book jacket." This "virtual cover" offers the prospective reader much the same information as a traditional book jacket: a cover design or illustration, a summary of the book and a biographical sketch of the author. There is even a free two or three page excerpt from the text itself, for the potential buyer who might like to leaf through a few virtual pages before making a purchase. "A typical book in the library can be purchased and downloaded for $5.95 to $9.95, less than the cost of most paperbacks. A few highly technical books are offered for as much as $25.00. As hardbacks, they would probably cost $50 or more," The buyer can download the book electronically, and typically is offered a choice of formats. For authors who have gone the subsidized publishing route, the site also offers the opportunity of selling traditional bound copies of their books. The site also offers authors full-service accounting and record keeping, as well as detailed marketing, customer tracking and prospect-to-sale ratio information. And authors receive a commission or royalty of 40% of the selling price, less any credit card fees, on each "book" sold.
Leading Online News Delivery Services Merge as NewsEdge:
Established electronic news aggregators Desktop Data Inc. and Individual Inc., both of Burlington, MA, are merging companies and services in a stock swap deal to be closed in first-quarter 1998. The new company will be titled NewsEDGE Corp. -- named after the flagship news delivery service of Desktop Data -- and headed by Desktop Data founder and CEO Donald L. McLagan. Combined, the companies drew $75 million in revenues during the year ending Sept. 30, 1997 -- a 35% growth from the year prior.
Interactive Journal Exceeds 150,000 Mark In Paid Subscribers:
Dow Jones & Co. said The Wall Street Journal Interactive Edition has attracted more than 150,000 paid subscribers just over a year after it began charging for access to its site on the World Wide Web. The Interactive Journal has the largest circulation of any paid-subscription site on the Web and is among the top sites for generating advertising revenue on the Internet, according to Thomas Baker, business director of the Interactive Journal.
Technology Brief: Easing of Indian Internet Rules:
The Indian government said it has lifted all restrictions on the number of private Internet-service providers allowed to operate in the state-controlled Internet market and on the fees they charge subscribers. The companies, however, will still have to obtain government licenses to operate. The government said the aim of the move is to bring Internet connections to as many as two million Indians within two or three years, from 40,000 now. Until now, the state-run Videsh Sanchar Nigam Ltd. has controlled Internet access in New Delhi, Bombay, Calcutta, Madras, Bangalore and Pune, while the Department of Telecommunications provided access in the rest of the country. AP-Dow Jones The Asian Wall Street Journal via Dow Jones
Saturday, November 01, 1997
11/1/97: Harpercollins, KnightRidder, SimonShuster, Amazon.com, Readers Digest,
Summary:
New Head Of Harpercollins Publishers
A.H. Belo Corp.: Net Income Declines 21% But Beats Analyst Forecast
Apple Begins Program To Support Position In Education Market
Reader's Digest Posts $56.4 Million Loss, Citing Weak Mailings
Knight Ridder Sells Newspapers
Harpercollins Signs Jewel
Bookwire Offers Redesign
Bookpages - Another Internet Bookstore
Harpercollins Gets Mystery Web Site
Simon & Schuster Recognized For Having Best Commercial Web Site
Amazon Marches On
RECENT NEWS:
NEW HEAD OF HARPERCOLLINS PUBLISHERS
News Corp. named Jane Friedman, one of the publishing industry's best-regarded executives, to lead HarperCollins Publishers, its troubled book publishing unit.
Ms. Friedman, currently a senior executive at Advance Publications Inc.'s Random House unit, will assume her new position next month. She will succeed Anthea Disney, who last month was elevated to the post of chairman of News America Publishing Group, a newly formed News Corp. unit that includes both HarperCollins and TV Guide magazine. Ms. Friedman will report to Ms. Disney.
HarperCollins has had a variety of problems in recent months. In August, the company said it would take a $270 million charge -- the biggest in the history of book publishing -- to cover write-downs for losses on author advances and unsold books as well as other restructuring costs. Some of News Corp.'s major investors have encouraged Rupert Murdoch to unload the unit, and there have been repeated rumors that he might do so, unsettling the publisher's employees. Ms. Friedman went to Los Angeles to meet with Mr. Murdoch in late September, and she says she came away believing that "he is in it for the long term." She also said HarperCollins's difficulties didn't cause her to hesitate joining the publisher. "They have had some tough knocks," Ms. Friedman said. "But I believe the company has turned the corner, and it now has a pretty clean slate."
The Wall Street Journal via Dow Jones
Copyright (c) 1997 Dow Jones and Company, Inc.
A.H. BELO CORP.: NET INCOME DECLINES 21% BUT BEATS ANALYST FORECAST
A.H. Belo Corp. said third-quarter net income decreased 21% to $15 million, or 24 cents a share, from $18.9 million, or 42 cents a share, in the year-earlier period. Earnings per-share were affected by the issuance of about 25 million common shares, related to an acquisition. The Dallas television and newspaper concern said sales increased 58% to $319.1 million. The company also said a 51% revenue increase in its newspaper publishing division, combined with strong advertising demand in all of its broadcasting markets, contributed to the earnings results. A survey of analysts by First Call had estimated Belo would report net of 18 cents a share.
Copyright (c) 1997 Dow Jones and Company, Inc.
Received via NewsEDGE from Desktop Data, Inc.: 10/29/97 02:22:31
APPLE BEGINS PROGRAM TO SUPPORT POSITION IN EDUCATION MARKET
Apple Computer Inc., seeking to shore up its sagging U.S. education stronghold, has launched a special promotion to credit schools with 10% of the purchase price of computers bought by students' parents.
Under the "Power of 10" program, which began Oct. 15 and is to run through Jan. 31, the schools will be able to use those credits towards purchase of their new Apple computers. The program was conceived by Apple interim Chief Executive Officer Steve Jobs, and is designed to strengthen the company's presence in a market that has been beset by competitors allied around the industry's dominant standard of Microsoft Corp. software and Intel Corp. microprocessors.
Under the promotion's terms, parents can buy directly from Apple any of 10 computer models, including some which previously had been offered only to schools. They can then designate the 10% credit to the K-12 school of their choice. If a school receives 10 of those credits, it can apply those to a free computer.
The Wall Street Journal via Dow Jones
Copyright (c) 1997 Dow Jones and Company, Inc.
READER'S DIGEST POSTS $56.4 MILLION LOSS, CITING WEAK MAILINGS
Reader's Digest Association Inc. reported a loss of $56.4 million, or 53 cents a share, for the fiscal first quarter, reflecting weak customer response to mailings and costs related to a corporate realignment of operations.
The loss for the quarter ended Sept. 30 compares with year-earlier net income of $34.6 million, or 32 cents a share. Revenue fell 13% to $561 million from $644 million. The latest results included a pretax charge of $70 million, or 49 cents a share, reflecting severance costs for staff reductions in Europe, the U.S. and at the corporate level, as well as a discontinuation of certain businesses.
The results reflected increased spending in product development and direct-marketing operations, the company said. George V. Grune, chairman and chief executive, said revenue in the quarter reflected lower customer response to company mailings and fewer mail solicitations sent out in major markets.
Revenue from the U.S.-based special-interest magazines and Reader's Digest magazine were higher than last year, reflecting gains in both circulation and advertising.
Copyright (c) 1997 Dow Jones and Company, Inc.
KNIGHT RIDDER SELLS NEWSPAPERS
MIAMI -- Knight-Ridder Inc. said it agreed to sell three newspapers that it had previously put on the block -- the Boca Raton News, Florida; the Union-Recorder, in Milledgeville, Ga.; and the suburban Newberry Observer, in South Carolina -- to Community Newspaper Holdings Inc., Louisville, Ky. Terms weren't disclosed, but media giant Knight-Ridder said the transaction includes the transfer to Knight-Ridder of the Daily Sun in Warner Robins, Ga.; the Byron Gazette, a Georgia weekly, and a shopper, also in Georgia. The transaction is expected to close by Thanksgiving.
Copyright (c) 1997 Dow Jones and Company, Inc.
HARPERCOLLINS SIGNS JEWEL
HarperCollins was very busy this week and they topped off their activity by contributing to one of the major problems in the publishing industry. HarperCollins bid and won -for $2MM- a book of poetry and a memoir from Jewel, the 23-year-old photogenic folk singer whose debut album Pieces of You has been on the charts for two years and sold six million copies to date. Regardless, many analysts have bemoaned the tendency by publishers for overpaying for book rights for ‘media stars’ who’s celebrity it turns out is fleeting.
Jewel's poetry book, which had been shopped around last year and was rumored to have received offers at that time of up to $1.5 million, is now expected to be published in June, followed by a memoir (she’s 23!) in fall 1998.
ONLINE PUBLISHING NEWS:
BOOKWIRE OFFERS REDESIGN
BookWire -- www.bookwire.com -- Wednesday offered a redesign featuring daily news, original reviews and features, and a new "behind-the-scenes" column from industry insiders. FLAP, a daily column covering insider news and behind the scenes intrigue about the book business is part of the redesign. Other new original BookWire content includes Soapbox, a place where people in and around the book business can talk about everything from their favorite books to hot trends in book selling, and Publisher's Spotlight, a sponsored feature where publishers and authors put their titles in the spotlight, and readers can see the cover, read flap copy, excerpts, testimonials, and more.
BOOKPAGES - ANOTHER INTERNET BOOKSTORE
For busy executives, preparing for Christmas can often be a nightmare. New U.K. Internet bookstore Bookpages, however, is hoping to lend a helping hand. A recent addition to the bloody Internet book wars, Bookpages is looking to capture an audience by offering snazzy new services to its site. Top of the list are new features for hurried Christmas shoppers.
First, swing by Bookpages' gift-selector service. The Bookpages staff have sifted through their 1.2 million titles and put together a list of books for specific friends and relations. Need something quick for a nine-year-old niece? Bookpages suggests the Roald Dahl Treasury or the Dorling Kindersley World Atlas. Prices are reasonable: Because it can cut out overhead costs, Bookpages manages to offer most wares at a discount below traditional bookstores.
Buyers, for their part, also get a present. Hoping to attract more customers, Bookpages offers a loyalty program. Once registered, buyers receive one Bookpoint for every 20 pence spent. Members with more than 500 points can redeem them against Bookpages books. Christmas gift recommendations however, earn buyers 50 points a shot.
http://www.bookpages.co.uk/
Copyright (c) 1997 Dow Jones and Company, Inc.
HARPERCOLLINS GETS MYSTERY WEB SITE
Following a trend that is becoming increasingly familiar, HarperCollins has entered a co-marketing agreement with online mystery publisher Newfront of San Francisco to have advertising and HarperCollins content featured on The Online Mystery Network (http://www.mysterynet.com). “The HarperCollins Mystery Corner” will be incorporated into the Newfront site, and will highlight popular novelists Tony Hillerman, Virginia Lanier and others by providing exclusive peeks at first chapters. MysteryNet.com will also host banner advertising for the book publisher and run special book promotions.
Newfront believes this alliance will be just the first of many as publishers realize how powerful Internet distribution can be for niche markets.
Cowles/Simba Media Daily 10/31/97
Copyright 1997 Cowles Business Media. All rights reserved.
SIMON & SCHUSTER RECOGNIZED FOR HAVING BEST COMMERCIAL WEB SITE
Technology Managers Forum has named Simon & Schuster's College NewsLink Web Site the "Best Vehicle For Conducting Commerce."
College NewsLink is a unique educational service that brings the leading newspapers of the world to the college campus via the World Wide Web. For the first time, these stories are organized by academic discipline and linked to other Web sites as well as to print information in textbooks. These links make Simon & Schuster's textbooks are current as today's newspaper. Topics in the news are linked to relevant university Web sites, textbooks, government sites,
political organizations, world leaders and more.
College Newslink is the first time a publisher has created an electronic product sold directly to colleges, and not through bookstores to students.
Recognition for the site was part of The Best Practice Awards, co-sponsored by PC Week and Technology Managers Forum International, a professional organization comprised of IT executives from large organizations. Technology Managers Forum is the only organization in the industry that has an awards program that is designed to establish Best Practices for IT Management
AMAZON MARCHES ON
Amazon.com reports another quarterly sales increase. For the third quarter that ended Sept. 30, 1997, sales were $37.9 million, a 36% increase over second-quarter sales and an 808% gain over the $4.2 million reported in the 1996 third quarter. For the first nine months of the year, Amazon reported sales of $81.7 million, it appears likely going into the Christmas buying season they could achieve full year sales of $120MM. For the first nine months of 1996, Amazon had sales of $7.3 million.
Net (Loss) income was higher than prior year periods reflecting increased marketing and sales expenses. For the quarter Amazon had a net loss of $8.5 million, compared to a loss of $2.4 million in the same quarter last year. The loss for the first nine months was $18.2 million, up from $3.5 million.
Amazon noted that cumulative customer accounts increased to over 940,000 by the end of September, compared to 610,000 at the close of June. Repeat customers represented 55% of sales in the period.
DID YOU KNOW:
There Are More Than 7 Million North American Children With Internet Accounts.
According to Teenage Research Unlimited (TRU), the percentage of teens who say that it is ``in'' to be on-line has jumped from 50 percent in 1994 to 74 percent in 1996 to 88 percent in 1997. It's now on par with dating and partying!
65%of all Book printing jobs are for less than 5,000 units.
18% all of New Yorkers are on line.
New Head Of Harpercollins Publishers
A.H. Belo Corp.: Net Income Declines 21% But Beats Analyst Forecast
Apple Begins Program To Support Position In Education Market
Reader's Digest Posts $56.4 Million Loss, Citing Weak Mailings
Knight Ridder Sells Newspapers
Harpercollins Signs Jewel
Bookwire Offers Redesign
Bookpages - Another Internet Bookstore
Harpercollins Gets Mystery Web Site
Simon & Schuster Recognized For Having Best Commercial Web Site
Amazon Marches On
RECENT NEWS:
NEW HEAD OF HARPERCOLLINS PUBLISHERS
News Corp. named Jane Friedman, one of the publishing industry's best-regarded executives, to lead HarperCollins Publishers, its troubled book publishing unit.
Ms. Friedman, currently a senior executive at Advance Publications Inc.'s Random House unit, will assume her new position next month. She will succeed Anthea Disney, who last month was elevated to the post of chairman of News America Publishing Group, a newly formed News Corp. unit that includes both HarperCollins and TV Guide magazine. Ms. Friedman will report to Ms. Disney.
HarperCollins has had a variety of problems in recent months. In August, the company said it would take a $270 million charge -- the biggest in the history of book publishing -- to cover write-downs for losses on author advances and unsold books as well as other restructuring costs. Some of News Corp.'s major investors have encouraged Rupert Murdoch to unload the unit, and there have been repeated rumors that he might do so, unsettling the publisher's employees. Ms. Friedman went to Los Angeles to meet with Mr. Murdoch in late September, and she says she came away believing that "he is in it for the long term." She also said HarperCollins's difficulties didn't cause her to hesitate joining the publisher. "They have had some tough knocks," Ms. Friedman said. "But I believe the company has turned the corner, and it now has a pretty clean slate."
The Wall Street Journal via Dow Jones
Copyright (c) 1997 Dow Jones and Company, Inc.
A.H. BELO CORP.: NET INCOME DECLINES 21% BUT BEATS ANALYST FORECAST
A.H. Belo Corp. said third-quarter net income decreased 21% to $15 million, or 24 cents a share, from $18.9 million, or 42 cents a share, in the year-earlier period. Earnings per-share were affected by the issuance of about 25 million common shares, related to an acquisition. The Dallas television and newspaper concern said sales increased 58% to $319.1 million. The company also said a 51% revenue increase in its newspaper publishing division, combined with strong advertising demand in all of its broadcasting markets, contributed to the earnings results. A survey of analysts by First Call had estimated Belo would report net of 18 cents a share.
Copyright (c) 1997 Dow Jones and Company, Inc.
Received via NewsEDGE from Desktop Data, Inc.: 10/29/97 02:22:31
APPLE BEGINS PROGRAM TO SUPPORT POSITION IN EDUCATION MARKET
Apple Computer Inc., seeking to shore up its sagging U.S. education stronghold, has launched a special promotion to credit schools with 10% of the purchase price of computers bought by students' parents.
Under the "Power of 10" program, which began Oct. 15 and is to run through Jan. 31, the schools will be able to use those credits towards purchase of their new Apple computers. The program was conceived by Apple interim Chief Executive Officer Steve Jobs, and is designed to strengthen the company's presence in a market that has been beset by competitors allied around the industry's dominant standard of Microsoft Corp. software and Intel Corp. microprocessors.
Under the promotion's terms, parents can buy directly from Apple any of 10 computer models, including some which previously had been offered only to schools. They can then designate the 10% credit to the K-12 school of their choice. If a school receives 10 of those credits, it can apply those to a free computer.
The Wall Street Journal via Dow Jones
Copyright (c) 1997 Dow Jones and Company, Inc.
READER'S DIGEST POSTS $56.4 MILLION LOSS, CITING WEAK MAILINGS
Reader's Digest Association Inc. reported a loss of $56.4 million, or 53 cents a share, for the fiscal first quarter, reflecting weak customer response to mailings and costs related to a corporate realignment of operations.
The loss for the quarter ended Sept. 30 compares with year-earlier net income of $34.6 million, or 32 cents a share. Revenue fell 13% to $561 million from $644 million. The latest results included a pretax charge of $70 million, or 49 cents a share, reflecting severance costs for staff reductions in Europe, the U.S. and at the corporate level, as well as a discontinuation of certain businesses.
The results reflected increased spending in product development and direct-marketing operations, the company said. George V. Grune, chairman and chief executive, said revenue in the quarter reflected lower customer response to company mailings and fewer mail solicitations sent out in major markets.
Revenue from the U.S.-based special-interest magazines and Reader's Digest magazine were higher than last year, reflecting gains in both circulation and advertising.
Copyright (c) 1997 Dow Jones and Company, Inc.
KNIGHT RIDDER SELLS NEWSPAPERS
MIAMI -- Knight-Ridder Inc. said it agreed to sell three newspapers that it had previously put on the block -- the Boca Raton News, Florida; the Union-Recorder, in Milledgeville, Ga.; and the suburban Newberry Observer, in South Carolina -- to Community Newspaper Holdings Inc., Louisville, Ky. Terms weren't disclosed, but media giant Knight-Ridder said the transaction includes the transfer to Knight-Ridder of the Daily Sun in Warner Robins, Ga.; the Byron Gazette, a Georgia weekly, and a shopper, also in Georgia. The transaction is expected to close by Thanksgiving.
Copyright (c) 1997 Dow Jones and Company, Inc.
HARPERCOLLINS SIGNS JEWEL
HarperCollins was very busy this week and they topped off their activity by contributing to one of the major problems in the publishing industry. HarperCollins bid and won -for $2MM- a book of poetry and a memoir from Jewel, the 23-year-old photogenic folk singer whose debut album Pieces of You has been on the charts for two years and sold six million copies to date. Regardless, many analysts have bemoaned the tendency by publishers for overpaying for book rights for ‘media stars’ who’s celebrity it turns out is fleeting.
Jewel's poetry book, which had been shopped around last year and was rumored to have received offers at that time of up to $1.5 million, is now expected to be published in June, followed by a memoir (she’s 23!) in fall 1998.
ONLINE PUBLISHING NEWS:
BOOKWIRE OFFERS REDESIGN
BookWire -- www.bookwire.com -- Wednesday offered a redesign featuring daily news, original reviews and features, and a new "behind-the-scenes" column from industry insiders. FLAP, a daily column covering insider news and behind the scenes intrigue about the book business is part of the redesign. Other new original BookWire content includes Soapbox, a place where people in and around the book business can talk about everything from their favorite books to hot trends in book selling, and Publisher's Spotlight, a sponsored feature where publishers and authors put their titles in the spotlight, and readers can see the cover, read flap copy, excerpts, testimonials, and more.
BOOKPAGES - ANOTHER INTERNET BOOKSTORE
For busy executives, preparing for Christmas can often be a nightmare. New U.K. Internet bookstore Bookpages, however, is hoping to lend a helping hand. A recent addition to the bloody Internet book wars, Bookpages is looking to capture an audience by offering snazzy new services to its site. Top of the list are new features for hurried Christmas shoppers.
First, swing by Bookpages' gift-selector service. The Bookpages staff have sifted through their 1.2 million titles and put together a list of books for specific friends and relations. Need something quick for a nine-year-old niece? Bookpages suggests the Roald Dahl Treasury or the Dorling Kindersley World Atlas. Prices are reasonable: Because it can cut out overhead costs, Bookpages manages to offer most wares at a discount below traditional bookstores.
Buyers, for their part, also get a present. Hoping to attract more customers, Bookpages offers a loyalty program. Once registered, buyers receive one Bookpoint for every 20 pence spent. Members with more than 500 points can redeem them against Bookpages books. Christmas gift recommendations however, earn buyers 50 points a shot.
http://www.bookpages.co.uk/
Copyright (c) 1997 Dow Jones and Company, Inc.
HARPERCOLLINS GETS MYSTERY WEB SITE
Following a trend that is becoming increasingly familiar, HarperCollins has entered a co-marketing agreement with online mystery publisher Newfront of San Francisco to have advertising and HarperCollins content featured on The Online Mystery Network (http://www.mysterynet.com). “The HarperCollins Mystery Corner” will be incorporated into the Newfront site, and will highlight popular novelists Tony Hillerman, Virginia Lanier and others by providing exclusive peeks at first chapters. MysteryNet.com will also host banner advertising for the book publisher and run special book promotions.
Newfront believes this alliance will be just the first of many as publishers realize how powerful Internet distribution can be for niche markets.
Cowles/Simba Media Daily 10/31/97
Copyright 1997 Cowles Business Media. All rights reserved.
SIMON & SCHUSTER RECOGNIZED FOR HAVING BEST COMMERCIAL WEB SITE
Technology Managers Forum has named Simon & Schuster's College NewsLink Web Site the "Best Vehicle For Conducting Commerce."
College NewsLink is a unique educational service that brings the leading newspapers of the world to the college campus via the World Wide Web. For the first time, these stories are organized by academic discipline and linked to other Web sites as well as to print information in textbooks. These links make Simon & Schuster's textbooks are current as today's newspaper. Topics in the news are linked to relevant university Web sites, textbooks, government sites,
political organizations, world leaders and more.
College Newslink is the first time a publisher has created an electronic product sold directly to colleges, and not through bookstores to students.
Recognition for the site was part of The Best Practice Awards, co-sponsored by PC Week and Technology Managers Forum International, a professional organization comprised of IT executives from large organizations. Technology Managers Forum is the only organization in the industry that has an awards program that is designed to establish Best Practices for IT Management
AMAZON MARCHES ON
Amazon.com reports another quarterly sales increase. For the third quarter that ended Sept. 30, 1997, sales were $37.9 million, a 36% increase over second-quarter sales and an 808% gain over the $4.2 million reported in the 1996 third quarter. For the first nine months of the year, Amazon reported sales of $81.7 million, it appears likely going into the Christmas buying season they could achieve full year sales of $120MM. For the first nine months of 1996, Amazon had sales of $7.3 million.
Net (Loss) income was higher than prior year periods reflecting increased marketing and sales expenses. For the quarter Amazon had a net loss of $8.5 million, compared to a loss of $2.4 million in the same quarter last year. The loss for the first nine months was $18.2 million, up from $3.5 million.
Amazon noted that cumulative customer accounts increased to over 940,000 by the end of September, compared to 610,000 at the close of June. Repeat customers represented 55% of sales in the period.
DID YOU KNOW:
There Are More Than 7 Million North American Children With Internet Accounts.
According to Teenage Research Unlimited (TRU), the percentage of teens who say that it is ``in'' to be on-line has jumped from 50 percent in 1994 to 74 percent in 1996 to 88 percent in 1997. It's now on par with dating and partying!
65%of all Book printing jobs are for less than 5,000 units.
18% all of New Yorkers are on line.
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.
Wednesday, October 15, 1997
10/15/97: ReedElsevier, Bertelsmann, Readers Digest, WoltersKluwer,
Summary:
Reed Elsevier to Acquire Wolters Kluwe
Bertelsmann Reports Earnings
Yet Another Afternoon Newspaper Bites the Dust
Readers Digest Problems Continue
L.A. Daily News on the Selling Block
NYT Sells More Magazines
Britannica Online to Offer Free Content
International Data Corporation Reports Exploding Internet Activity
Breakthrough Will Bring Internet to The Home via Power Wires
School text books
Recent News:
Reed Elsevier to Acquire Wolters Kluwer
Reed and Wolters Kluwer announced Tuesday that they would merge creating an $8.1Bill global publisher concentrating on professional and trade journal publishing. Reed owns Lexis-Nexis, Reed Travel Group (including OAG) and is the largest worldwide publisher of academic journals. Wolters Kluwer dominates legal and tax publishing in Europe and is based in the Netherlands. In 1996 Reed Elsevier reported sales and income of $5.42Bill and $1.2Bill and Wolters Kluwer reported sales and net income of $2.7Bill and $429MM. Analysts suggest the combined company will be in a strong position to share the costs of moving to electronic publishing away from paper.
Bertelsmann Reports Earnings:
Sales increased year on year to $12.8Bill (4.2% increase) and net income was $582MM. Bertelsmann is the third of the large media firms after Time Warner and Disney but is much less geared - debt represents less that 5% of turnover versus TM and Disney of 97% and 62% respectively. Books (WW) constituted $4.1Bill in sales and were the second largest group after Music. Of this amount the US represented (only) $1Bill in sales. According to reports Bertelsmann is actively looking for a publishing acquisition in the US. (A number of companies have been mentioned and John Wileys chairman recently sent an internal memo to employees stating that Wiley was definitely not for sale). Due to their deal with AOL, Bertelsmann are the European on-line leader - they have a 50-50 partnership with AOL.
Yet Another Afternoon Newspaper Bites the Dust:
E.W. Scripps recently announced that it has been forced to discontinue a local afternoon newspaper The El Paso Herald-Post due to rapidly decreasing sales. Scripps publishes the Herald-Post, whose last edition goes out Saturday, in cooperation with Gannett Co., which owns the related daily The El Paso Times, and leads promotion and distribution for both newspapers. The El Paso Times will not be affected by this decision.
Cowles Business Media: MediaCentral 10/7/97
Readers Digest Problems Continue:
The Reader's Digest Association Inc. recently said that it expects to report a loss of $.05 to $.10 per share for its fiscal 1998 first quarter ended Sept. 30, lower than analysts' estimates. Reader's Digest also expects lower than expected revenues. The publisher cited lower than anticipated expected response to promotional mailings in most major markets. The financial report, to be released on Oct. 29, will include non-recurring charges of approximately $70 million. In the fourth quarter ended June 19, the company reported a net loss of $22.8 million or $.22 per share.
Cowles Business Media: MediaCentral 10/7/97
L.A. Daily News on the Selling Block:
Reuters reported that the merger and acquisition firm Dirks, Van Essen & Associates of Santa Fe, NM, has been retained to handle the sale of The Los Angeles Daily News which was acquired in 1985 for $176 million from the Tribune Co. Observers expect the sale can fetch as much as $200 million to $250 million.
The daily has a circulation of 203,000 weekdays and 218,000 on Sundays. Prospective buyers include Rupert Murdoch's News Corp., Denver Post parent MediaNews Group, Orange County Register parent Freedom Communications and Toronto-based publisher Thomson Corp.
Cowles Business Media: MediaDaily 10/6/97
NYT Sells More Magazines:
The New York Times Co. will sell six sports magazines to Miller Publishing. The titles involved are Tennis, Tennis Buyer's Guide, Cruising World, Sailing World, Snow Country and Snow Country Business. The transaction is expected to be completed by year end. The Los Angeles-based purchaser is a partnership between private equity investment firm of Freeman Spogli & Co. Inc. and Robert L. Miller, the group's president and a former Time Inc. executive.
On-line/New Media News:
Britannica Online to Offer Free Content
Encyclopedia Britannica Inc., whose core online product is subscription-based Web service Britannica Online, launched the latest in its series of Spotlights, its free quarterly Web sites dedicated to a particular, timely topic. In honor of the Nobel awards this month, the Nobel Prize Web site http://www.nobel.eb.com) illuminates in text and multimedia clips of past winners and the innovations and efforts singled out to receive the world's most prestigious awards.
Through the free in-depth coverage of historical and current issues, EB hopes to lure subscribers to Britannica Online (http://www.eb.com), which presently claims 10,000 users. The big deterrent, company research found, was the relatively high cost for Web-based material, for which until just weeks ago an annual subscription cost $150 or $12.50 per month. In response on On Sept. 15, the service slashed its prices to $8.50 per month and has seen subscription rates rise by 10%.
Cowles Business Media: MediaCentral 10/7/97
International Data Corporation Reports Exploding Internet Activity:
Research presented at the recent Internet 98 Conference in Burlingame, Calif. by IDC, a Framingham, Mass. Based market research firm, indicates there are currently 53.2MM Internet users worldwide with 44.2MM of those using the World Wide Web. (About 9MM people use e-mail but not the Web.)
At the current rate of growth, IDC projects that there will be 60MM Internet users and 50MM World Wide Web users by Dec. 31 which represents an increase of more than 26MM Internet users and 22.4MM World Wide Web users since 1996.
According to the study more than $10Bil in goods and services are expected to be purchased on the WWW by the end of 1997. IDC estimated that 2/3 of this amount was generated by corporations using the Internet as an effective method for ordering and paying for products and services. (Companies like Cisco Systems and GE use the internet extensively for this purpose). There may be close to 1MM Internet transactions occurring each day on the Internet. (www.idc.com for more information).
Breakthrough Will Bring Internet to The Home via Power Wires:
The London Times reported recently that two companies, Northern Telecom and Norweb Communications, have found the "holy grail" of telecommunications the ability to send vast amounts of data along power lines without its being distorted by interference. In future, every home in the country (UK) could be connected to the Internet in this way, providing increasing competition for telephone companies, especially BT.
Norweb intends to offer a commercial trial to 2,000 homes in the North West next spring. The two companies said yesterday that their service could offer an Internet connection 20 to 30 times faster than commonly available through today's telephone modems and that the cost would be lower by up to 50 per cent.
BT said last night it did not believe its business would be effected. Strong content, BT said, was the key to success on the Internet.
Did You Know....
Texas, facing the potential cost of $1.6Bill for school text books over the next six years is reviewing the possibility of buying laptop computers with CD ROM drives as an alternative to printed texts. The cost of acquiring texts for the 2000-2001 (two year period) is expected to roughly double what the cost was for 1996-1997 ($360MM vs. $600MM). Trials are currently underway in some MA school districts using computers rather than texts and information via inter/intranet is transmitted to each laptop via infra-red nodes in the ceiling of each classroom. Naturally, the computers are designed to be pretty hardy.
Reed Elsevier to Acquire Wolters Kluwe
Bertelsmann Reports Earnings
Yet Another Afternoon Newspaper Bites the Dust
Readers Digest Problems Continue
L.A. Daily News on the Selling Block
NYT Sells More Magazines
Britannica Online to Offer Free Content
International Data Corporation Reports Exploding Internet Activity
Breakthrough Will Bring Internet to The Home via Power Wires
School text books
Recent News:
Reed Elsevier to Acquire Wolters Kluwer
Reed and Wolters Kluwer announced Tuesday that they would merge creating an $8.1Bill global publisher concentrating on professional and trade journal publishing. Reed owns Lexis-Nexis, Reed Travel Group (including OAG) and is the largest worldwide publisher of academic journals. Wolters Kluwer dominates legal and tax publishing in Europe and is based in the Netherlands. In 1996 Reed Elsevier reported sales and income of $5.42Bill and $1.2Bill and Wolters Kluwer reported sales and net income of $2.7Bill and $429MM. Analysts suggest the combined company will be in a strong position to share the costs of moving to electronic publishing away from paper.
Bertelsmann Reports Earnings:
Sales increased year on year to $12.8Bill (4.2% increase) and net income was $582MM. Bertelsmann is the third of the large media firms after Time Warner and Disney but is much less geared - debt represents less that 5% of turnover versus TM and Disney of 97% and 62% respectively. Books (WW) constituted $4.1Bill in sales and were the second largest group after Music. Of this amount the US represented (only) $1Bill in sales. According to reports Bertelsmann is actively looking for a publishing acquisition in the US. (A number of companies have been mentioned and John Wileys chairman recently sent an internal memo to employees stating that Wiley was definitely not for sale). Due to their deal with AOL, Bertelsmann are the European on-line leader - they have a 50-50 partnership with AOL.
Yet Another Afternoon Newspaper Bites the Dust:
E.W. Scripps recently announced that it has been forced to discontinue a local afternoon newspaper The El Paso Herald-Post due to rapidly decreasing sales. Scripps publishes the Herald-Post, whose last edition goes out Saturday, in cooperation with Gannett Co., which owns the related daily The El Paso Times, and leads promotion and distribution for both newspapers. The El Paso Times will not be affected by this decision.
Cowles Business Media: MediaCentral 10/7/97
Readers Digest Problems Continue:
The Reader's Digest Association Inc. recently said that it expects to report a loss of $.05 to $.10 per share for its fiscal 1998 first quarter ended Sept. 30, lower than analysts' estimates. Reader's Digest also expects lower than expected revenues. The publisher cited lower than anticipated expected response to promotional mailings in most major markets. The financial report, to be released on Oct. 29, will include non-recurring charges of approximately $70 million. In the fourth quarter ended June 19, the company reported a net loss of $22.8 million or $.22 per share.
Cowles Business Media: MediaCentral 10/7/97
L.A. Daily News on the Selling Block:
Reuters reported that the merger and acquisition firm Dirks, Van Essen & Associates of Santa Fe, NM, has been retained to handle the sale of The Los Angeles Daily News which was acquired in 1985 for $176 million from the Tribune Co. Observers expect the sale can fetch as much as $200 million to $250 million.
The daily has a circulation of 203,000 weekdays and 218,000 on Sundays. Prospective buyers include Rupert Murdoch's News Corp., Denver Post parent MediaNews Group, Orange County Register parent Freedom Communications and Toronto-based publisher Thomson Corp.
Cowles Business Media: MediaDaily 10/6/97
NYT Sells More Magazines:
The New York Times Co. will sell six sports magazines to Miller Publishing. The titles involved are Tennis, Tennis Buyer's Guide, Cruising World, Sailing World, Snow Country and Snow Country Business. The transaction is expected to be completed by year end. The Los Angeles-based purchaser is a partnership between private equity investment firm of Freeman Spogli & Co. Inc. and Robert L. Miller, the group's president and a former Time Inc. executive.
On-line/New Media News:
Britannica Online to Offer Free Content
Encyclopedia Britannica Inc., whose core online product is subscription-based Web service Britannica Online, launched the latest in its series of Spotlights, its free quarterly Web sites dedicated to a particular, timely topic. In honor of the Nobel awards this month, the Nobel Prize Web site http://www.nobel.eb.com) illuminates in text and multimedia clips of past winners and the innovations and efforts singled out to receive the world's most prestigious awards.
Through the free in-depth coverage of historical and current issues, EB hopes to lure subscribers to Britannica Online (http://www.eb.com), which presently claims 10,000 users. The big deterrent, company research found, was the relatively high cost for Web-based material, for which until just weeks ago an annual subscription cost $150 or $12.50 per month. In response on On Sept. 15, the service slashed its prices to $8.50 per month and has seen subscription rates rise by 10%.
Cowles Business Media: MediaCentral 10/7/97
International Data Corporation Reports Exploding Internet Activity:
Research presented at the recent Internet 98 Conference in Burlingame, Calif. by IDC, a Framingham, Mass. Based market research firm, indicates there are currently 53.2MM Internet users worldwide with 44.2MM of those using the World Wide Web. (About 9MM people use e-mail but not the Web.)
At the current rate of growth, IDC projects that there will be 60MM Internet users and 50MM World Wide Web users by Dec. 31 which represents an increase of more than 26MM Internet users and 22.4MM World Wide Web users since 1996.
According to the study more than $10Bil in goods and services are expected to be purchased on the WWW by the end of 1997. IDC estimated that 2/3 of this amount was generated by corporations using the Internet as an effective method for ordering and paying for products and services. (Companies like Cisco Systems and GE use the internet extensively for this purpose). There may be close to 1MM Internet transactions occurring each day on the Internet. (www.idc.com for more information).
Breakthrough Will Bring Internet to The Home via Power Wires:
The London Times reported recently that two companies, Northern Telecom and Norweb Communications, have found the "holy grail" of telecommunications the ability to send vast amounts of data along power lines without its being distorted by interference. In future, every home in the country (UK) could be connected to the Internet in this way, providing increasing competition for telephone companies, especially BT.
Norweb intends to offer a commercial trial to 2,000 homes in the North West next spring. The two companies said yesterday that their service could offer an Internet connection 20 to 30 times faster than commonly available through today's telephone modems and that the cost would be lower by up to 50 per cent.
BT said last night it did not believe its business would be effected. Strong content, BT said, was the key to success on the Internet.
Did You Know....
Texas, facing the potential cost of $1.6Bill for school text books over the next six years is reviewing the possibility of buying laptop computers with CD ROM drives as an alternative to printed texts. The cost of acquiring texts for the 2000-2001 (two year period) is expected to roughly double what the cost was for 1996-1997 ($360MM vs. $600MM). Trials are currently underway in some MA school districts using computers rather than texts and information via inter/intranet is transmitted to each laptop via infra-red nodes in the ceiling of each classroom. Naturally, the computers are designed to be pretty hardy.
Friday, October 10, 1997
10/10/97: Newspaper Revenues, Wiley Pearson, Primedia, ReedElsevier
Summary:
Newspaper Publishers Expected to Post Higher Earnings on Strong Ad Revenue:
Gannett, Knight-Ridder, New York Times Co, Washington Post, Tribune Co. Times Mirror, A.H. Belo, Providence Journal, Dow Jones & Co., E.W. Scripps, Central Newspapers, Media General
Scripps Completes Acquisitions of Harte-Hanks Newspapers and the Food Network
Gannet Buys Two Maine TV Stations
Cowles Media Company for sale
Changes at Reed Elsevier Business Information
News Corp. Chief Admits Setbacks
Wiley to Acquire Van Nostrand Reinhold
Sulzberger Steps Down As NYT Chairman, Company Profits Up
Addison Wesley Longman and Headland Become Digital Media Partners for Distance Learning on World Wide Web
Earth's Biggest Bookstore Serves Millionth Unique Customer
Dutch Publishing Merger Creates Formidable Online Business
Recent News
Newspaper Publishers Expected to Post Higher Earnings on Strong Ad Revenue:
Newspaper publishers' third-quarter earnings are expected to be higher than a year ago as advertising revenue continued to flow in the period and newsprint prices rose only modestly. The price of newsprint, which typically constitutes about 20% of a publisher's costs, rose in the third quarter from the second period but was still below the year-earlier level.
Gannett Co. stands out among big publishers, with third-quarter earnings expected to rise to $1.01 a share from 79 cents, according to analysts' estimates compiled by First Call Inc. Revenue has been climbing at the Arlington, Va., company's flagship publication, USA Today, as well as at its smaller newspapers and television stations. Knight-Ridder has been divesting non-core assets and fine-tuning its newspaper portfolio by buying, selling and swapping papers. First Call puts earnings for the company, which publishes the Miami Herald, the Philadelphia Inquirer and the San Jose Mercury News, at 42 cents a share, up from 37 cents a year earlier. New York Times Co.'s earnings are expected to rise to 43 cents a share in the third quarter from 38 cents a year earlier as its flagship newspaper cashes in on booming national advertising.
Washington Post Co.'s earnings are seen rising to $5.14 a share for the quarter from $5 a share. Tribune Co.'s earnings are expected to rise to 49 cents a share from 46 cents. Tribune, which publishes the Chicago Tribune, gained a substantial TV presence through its purchase of Renaissance Communications last spring. At Times Mirror Co. of Los Angeles, third-quarter earnings are seen jumping to 59 cents a share from 43 cents, but analysts caution that the increase isn't so much from top-line growth as it is from a massive restructuring and cost cutting initiated by Chief Executive Officer Mark Willes 18 months ago.
A.H. Belo & Co.'s earnings are expected to drop sharply to 18 cents a share from 42 cents. The drop reflects dilution from the Dallas company's $1.5 billion acquisition of Providence Journal Co. early this year. Dow Jones & Co.'s earnings are expected to fall to 22 cents a share from 33 cents. The New York publisher of The Wall Street Journal said early in the year that it expects weaker earnings as it invests as much as $650 million over the next several years to restructure its dataservices unit, Dow Jones Markets, formerly called Telerate.
Among smaller publishers: Earnings at E.W. Scripps Co. of Cincinnati are seen rising to 34 cents a share from 29 cents. Central Newspapers Inc. of Indianapolis is expected to post an earnings jump to 75 cents a share from 57 cents. At Media General of Richmond, Va., earnings are seen falling to 35 cents a share from 59 cents.
Despite generally upbeat numbers, analysts are somewhat cautious on the sector going forward. Newsprint prices may not be rising as quickly as feared, but they definitely are headed up. Newsprint, which cost about $570 a metric ton in the third quarter, will reach $600 a ton in the first quarter of 1998, up almost $100 from the year-earlier period. (A metric ton equals 2,204.62 pounds). Analysts are not convinced that retail advertising, the largest chunk of ads for most newspapers, will be strong enough to offset higher newsprint prices.
WSJ via NewsEDGE Copyright (c) 1997 Dow Jones and Company, Inc. Received via NewsEDGE from Desktop Data, Inc.: 10/06/97 02:14:51
Scripps Completes Acquisitions of Harte-Hanks Newspapers and the Food Network
CINCINNATI, Oct. 15 /PRNewswire/ -- The E. W. Scripps Company (NYSE: SSP) today completed two previously announced transactions at a total cost of approximately $700 million.
First, Scripps acquired six newspapers (five in Texas and one in South Carolina), plus stations KENS-TV and KENS-AM in San Antonio from Harte-Hanks Communications. Then, through a subsequent transaction, Scripps traded the KENS stations to A.H. Belo in exchange for Belo's 56 percent controlling interest in The Food Network and $75 million in cash. Transfer of the KENS broadcast licenses to Belo is subject to final government approval.
Following these transactions, Scripps operates:
* Nine network-affiliated television stations;
* Newspapers in 20 markets;
* Two television networks -- Home & Garden Television and The Food
Network;
* United Media, a licensor and syndicator of news features and comics;
* Cinetel Productions, a creator of programming primarily for cable TV
networks;
* Scripps Howard Productions, a creator of programming primarily for
broadcast TV networks.
Source: The E.W. Scripps Company
Gannet Buys Two Maine TV Stations
Gannett Co., Arlington, Va., said it agreed to acquire two Maine television stations. Terms weren't disclosed. Gannett is buying WCSH, the NBC affiliate in Portland, from Maine Radio & Television Co., and WLBZ, the NBC affiliate in Bangor, from Maine Broadcasting Co. The transaction is subject to the approval of the Federal Communications Commission. Upon completion of this transaction, Gannett Broadcasting will have 20 television stations.
Source: Dow Jones
Cowles Media Company for sale
Recently the trustees of the Cowles family announced that it was examining `strategic alternatives'' to its ownership of Cowles Media Co, and The Star Tribune, its flagship newspaper, including a possible sale that could reap at least $1 billion. There has been only a very thin market for the relatively few shares of Cowles Media that are traded, and the price of the stock today, in the mid-$50s - is still undervalued compared with the more than $70 a share that analysts think it would be worth in a sale. The Minneapolis StarTribune accounts for about two-thirds of Cowles Media's revenues, which was $517 million in the fiscal year ended March 29. The company also publishes a number of small magazines and business and marketing publications.
Cowles Media is not discussing its list of possible suitors, nor would its spokesman say whether the company had, in fact, tried and failed to line up a buyer before it announced its possible sale last month. Many analysts think a deal may be reached by Thanksgiving. The Washington Post Co. is considered to be the front-runner because it already owns 28 percent of the Cowles stock. Its treasurer, Jay Morse, said his company did not comment on potential acquisitions.
Also mentioned is Times Mirror Corp., owner of The Los Angeles Times and Newsday. Its chairman, Mark Willes, the chairman of Times Mirror, has been spinning off companies not directly related to Times Mirror's core media businesses since he came to the company two years ago. But he has said in the past that he would not be opposed to acquisitions that ``fit'' Times Mirror 's publishing and broadcasting interests.
c.1997 N.Y. Times News Service 23:38 EDT OCTOBER 12, 1997
Changes at Reed Elsevier Business Information
Folio, First Day reports of 100 job cuts, magazine and research-units being put up for sale and the establishment of new publishing divisions at Reed Elsevier Business Information, the sprawling Reed Elsevier PLC unit created by the merger of Cahners Publishing and Chilton Publishing. Company spokesperson Margaret Pantridge tells First Day that nine properties are being
divested in addition to the four computer magazines (Government Computer News, Government Computer News State & Local, Datamation and Reseller Management) previously announced.
The nine properties newly up for sale include: Chilton Research Services, a major operation serving Fortune 500 companies, and the Business Research Group, which is being lumped in with the divestment of the four aforementioned computer magazines; as well as seven other magazines including CabinetMaker; Cheese Market News; Dairy Foods; Furniture Design & Manufacturing; Instrumentation & Control Systems; Home Improvement Market; and Upholstery Design & Manufacturing.
Key personnel moves in a realignment of the Cahners-Chilton entities include the naming of three former Chilton executives to a steering committee: Lee Hufnagel, Andrew Weber and Bill O'Brien. Pantridge says the realignment "basically" establishes three magazine divisions: the 39-title manufacturing/new-product unit (among its notable titles are Design News and Manufacturing Systems); entertainment, communications and media, headed by headed by executive VP Mark Lieberman, who'll oversee Variety, Broadcasting & Cable, Publishers Weekly, Multichannel News and 18 other publications; and the 59-title business publications division, headed by executive VP Brian Nairn.
In addition to serving on the steering committee, O'Brien is chief operations officer of the entertainment/communications/media unit. Hufnagel's role is to coordinate the Cahners-Chilton integration. He and the rest of the management team report to Reed Elsevier Business nformation president/CEO Bruce Barnet, based in Newton, MA.
Cowles/Simba Media Daily 10/10/97
Copyright 1997 Cowles Business Media. All rights reserved.
News Corp. Chief Admits Setbacks
Speaking at News Corp.'s annual meeting in Adelaide, Australia, chairman and chief executive Rupert Murdoch offered shareholders an upbeat speech, but also admitted to some setbacks. In discussing News Corp.'s net profits for the year ended June 30, including millions in charges from HarperCollins, the News Corp. chief reported that the troubled book publisher would generate revenues of $700 million and "will be profitable, although not magnificently so." He conceded that the unit was a source of "a great deal of difficulty."
Cowles/Simba Media Daily 10/8/97
Copyright 1997 Cowles Business Media. All rights reserved.
Wiley to Acquire Van Nostrand Reinhold
New York, N.Y. October 9, 1997. Charles R. Ellis, President and Chief Executive Officer of John Wiley & Sons, Inc. (NYSE: JW.A and JW.B), the global publishing company headquartered in New York, today announced that it has reached an agreement with International Thomson Publishing (ITP), a division of The Thomson Corporation (TSE: TOC) to purchase the assets of its Van Nostrand Reinhold (VNR) operating unit, which is located in New York. The terms of the sale, which should close in the fall, were not disclosed; however, the transaction is subject to the Hart-Scott-Rodino waiting period.
VNR is a publisher of books and electronic products for professionals in architecture/design,
environmental/industrial science, culinary arts/hospitality, and business technology. VNR is known for its numerous "franchise" titles, which are regarded by many professionals as indispensable; examples include Ching's Architectural Graphics, Sax's Dangerous Properties of Industrial Materials, the Culinary Institute of America series, Kerzner's Product Management, and
Considine's Van Nostrand Scientific Encyclopedia.
Sulzberger Steps Down As NYT Chairman, Company Profits Up
The New York Times Co. announced on Thursday that Arthur Ochs Sulzberger, its chairman and CEO, has stepped down after leading the company for 24 years, and that in his place Arthur O.
Sulzberger Jr. has been elected chairman, effective immediately. The senior Sulzberger will remain on the board of directors as chairman emeritus, while his son will continue on as publisher of the company's flagship enterprise. In addition, president Russell T. Lewis has been named to the position of CEO.
Online Publishing Information:
Addison Wesley Longman and Headland Become Digital Media Partners for Distance Learning on World Wide Web
Addison Wesley Longman and Headland Digital Media, both Pearson companies, announced today an alliance to provide fully accredited educational materials from leading institutions to students via the World Wide Web. The venture will publish learning and teaching systems so that students of any age and from anywhere in the world can advance their academic degrees online. Leading universities and distinguished scholars and instructors will offer the curriculum.
The alliance is designed for students who want to take academic subjects such as business, mathematics, communications, and computer science by means of the Internet. The venture will also provide online solutions to help students develop the skills and training to succeed outside the classroom. Students will be able to download materials directly from the World Wide Web, thus reducing their costs of commuting and housing, and permitting flexible scheduling. The programs are expected to reach existing students and to extend fully accredited courses to students who might not otherwise be able to attain a college degree.
Each partner brings considerable expertise and industry-specific success to the venture. Addison Wesley Longman, through its global publishing business, has relationships with many of the most respected and highly regarded authors of educational texts. They have also fostered strategic
relationships with top academic institutions.
Earth's Biggest Bookstore Serves Millionth Unique Customer
SEATTLE, Oct. 14 /PRNewswire/ -- Amazon.com, Inc. (Nasdaq: AMZN) today announced it will be the first Internet retailer to reach the one-millionth new customer milestone. Celebrating its number one status in e-commerce traffic, the company today kicks off a two-week customer promotion "You're One in a Million at Amazon.com." In just two years, Amazon.com (http://www.amazon.com) has established itself as not only the leader in online booksellers but as the leading Internet retailer, according to the latest report from Media Metrix (formerly PC
Meter). With an estimated 4.5% of all Web households visiting Amazon.com during August, 1997, Amazon.com received more traffic than Internet giants wal-mart.com, QVC.com, and landsend.com combined.
SOURCE Amazon.com, Inc.
Dutch Publishing Merger Creates Formidable Online Business
The proposed merger between Reed Elsevier and Wolters Kluwer, would create one of the largest online legal, tax and public records publishers in the United States with 1996 online sales of $410 million, according to Electronic Information Report (EIR) estimates. The deal, if approved by shareholders, would bring together Reed Elsevier's LEXIS LEXIS and Wolters Kluwer's CCH Online services. EIR estimates LEXIS had 1996 sales of $345 million, while CCH Online generated $65 million in 1996. This places the combined properties a close second behind Thomson's WESTLAW online legal service, which posted sales of $450 million in 1996, according to EIR estimates.
Overall, the Dutch combination, to be called Elsevier Wolters Kluwer (EWK), would allow the
companies to overtake Thomson Corp. as the largest professional publisher in the world. EWK
would have pro forma sales of $4.66 billion in 1996. Thomson would be bumped to second place
with sales of $3.39 billion in 1996 and McGraw-Hill would move into a distant third with sales of
$1.37 billion in 1996. The merger, to be conducted as a stock swap, is expected to be completed
in the first quarter 1998.
Apart from size, the combination of CCH and LEXIS brings together complementary content,
according to Meryick Payne, senior partner at Management Practice, a professional publishing
consultancy. CCH's 700 print and CD-ROM tax titles would finally give tax and accounting
professionals, who as a group have shunned online access in favor of CD-ROM and print
products, a reason to try LEXIS-NEXIS, he said. LEXIS-NEXIS's has 839,000 online subscribers.
Conversely, LEXIS's strength in U.S. federal and state case law as well as its broad range of
specialized libraries in securities, banking, the environment, energy, international and public
records, could be the content boost CCH Online needs to invigorate flagging sales. In its second
year under the ownership of Amsterdam-based Wolters Kluwer, CCH's 1996 legal information
sales were flat at $130 million, according to EIR estimates.
Cowles/Simba Media Daily 10/10/97
Copyright 1997 Cowles Business Media. All rights reserved
DID YOU KNOW:
Newspaper circulation has been declining relative to U.S. household formation for years, and today is only 57 million nationwide. Circulation had been falling by 0.5%-1.0% a year since 1987, but the drop accelerated to 2% in each of the last two years.
Newspaper Publishers Expected to Post Higher Earnings on Strong Ad Revenue:
Gannett, Knight-Ridder, New York Times Co, Washington Post, Tribune Co. Times Mirror, A.H. Belo, Providence Journal, Dow Jones & Co., E.W. Scripps, Central Newspapers, Media General
Scripps Completes Acquisitions of Harte-Hanks Newspapers and the Food Network
Gannet Buys Two Maine TV Stations
Cowles Media Company for sale
Changes at Reed Elsevier Business Information
News Corp. Chief Admits Setbacks
Wiley to Acquire Van Nostrand Reinhold
Sulzberger Steps Down As NYT Chairman, Company Profits Up
Addison Wesley Longman and Headland Become Digital Media Partners for Distance Learning on World Wide Web
Earth's Biggest Bookstore Serves Millionth Unique Customer
Dutch Publishing Merger Creates Formidable Online Business
Recent News
Newspaper Publishers Expected to Post Higher Earnings on Strong Ad Revenue:
Newspaper publishers' third-quarter earnings are expected to be higher than a year ago as advertising revenue continued to flow in the period and newsprint prices rose only modestly. The price of newsprint, which typically constitutes about 20% of a publisher's costs, rose in the third quarter from the second period but was still below the year-earlier level.
Gannett Co. stands out among big publishers, with third-quarter earnings expected to rise to $1.01 a share from 79 cents, according to analysts' estimates compiled by First Call Inc. Revenue has been climbing at the Arlington, Va., company's flagship publication, USA Today, as well as at its smaller newspapers and television stations. Knight-Ridder has been divesting non-core assets and fine-tuning its newspaper portfolio by buying, selling and swapping papers. First Call puts earnings for the company, which publishes the Miami Herald, the Philadelphia Inquirer and the San Jose Mercury News, at 42 cents a share, up from 37 cents a year earlier. New York Times Co.'s earnings are expected to rise to 43 cents a share in the third quarter from 38 cents a year earlier as its flagship newspaper cashes in on booming national advertising.
Washington Post Co.'s earnings are seen rising to $5.14 a share for the quarter from $5 a share. Tribune Co.'s earnings are expected to rise to 49 cents a share from 46 cents. Tribune, which publishes the Chicago Tribune, gained a substantial TV presence through its purchase of Renaissance Communications last spring. At Times Mirror Co. of Los Angeles, third-quarter earnings are seen jumping to 59 cents a share from 43 cents, but analysts caution that the increase isn't so much from top-line growth as it is from a massive restructuring and cost cutting initiated by Chief Executive Officer Mark Willes 18 months ago.
A.H. Belo & Co.'s earnings are expected to drop sharply to 18 cents a share from 42 cents. The drop reflects dilution from the Dallas company's $1.5 billion acquisition of Providence Journal Co. early this year. Dow Jones & Co.'s earnings are expected to fall to 22 cents a share from 33 cents. The New York publisher of The Wall Street Journal said early in the year that it expects weaker earnings as it invests as much as $650 million over the next several years to restructure its dataservices unit, Dow Jones Markets, formerly called Telerate.
Among smaller publishers: Earnings at E.W. Scripps Co. of Cincinnati are seen rising to 34 cents a share from 29 cents. Central Newspapers Inc. of Indianapolis is expected to post an earnings jump to 75 cents a share from 57 cents. At Media General of Richmond, Va., earnings are seen falling to 35 cents a share from 59 cents.
Despite generally upbeat numbers, analysts are somewhat cautious on the sector going forward. Newsprint prices may not be rising as quickly as feared, but they definitely are headed up. Newsprint, which cost about $570 a metric ton in the third quarter, will reach $600 a ton in the first quarter of 1998, up almost $100 from the year-earlier period. (A metric ton equals 2,204.62 pounds). Analysts are not convinced that retail advertising, the largest chunk of ads for most newspapers, will be strong enough to offset higher newsprint prices.
WSJ via NewsEDGE Copyright (c) 1997 Dow Jones and Company, Inc. Received via NewsEDGE from Desktop Data, Inc.: 10/06/97 02:14:51
Scripps Completes Acquisitions of Harte-Hanks Newspapers and the Food Network
CINCINNATI, Oct. 15 /PRNewswire/ -- The E. W. Scripps Company (NYSE: SSP) today completed two previously announced transactions at a total cost of approximately $700 million.
First, Scripps acquired six newspapers (five in Texas and one in South Carolina), plus stations KENS-TV and KENS-AM in San Antonio from Harte-Hanks Communications. Then, through a subsequent transaction, Scripps traded the KENS stations to A.H. Belo in exchange for Belo's 56 percent controlling interest in The Food Network and $75 million in cash. Transfer of the KENS broadcast licenses to Belo is subject to final government approval.
Following these transactions, Scripps operates:
* Nine network-affiliated television stations;
* Newspapers in 20 markets;
* Two television networks -- Home & Garden Television and The Food
Network;
* United Media, a licensor and syndicator of news features and comics;
* Cinetel Productions, a creator of programming primarily for cable TV
networks;
* Scripps Howard Productions, a creator of programming primarily for
broadcast TV networks.
Source: The E.W. Scripps Company
Gannet Buys Two Maine TV Stations
Gannett Co., Arlington, Va., said it agreed to acquire two Maine television stations. Terms weren't disclosed. Gannett is buying WCSH, the NBC affiliate in Portland, from Maine Radio & Television Co., and WLBZ, the NBC affiliate in Bangor, from Maine Broadcasting Co. The transaction is subject to the approval of the Federal Communications Commission. Upon completion of this transaction, Gannett Broadcasting will have 20 television stations.
Source: Dow Jones
Cowles Media Company for sale
Recently the trustees of the Cowles family announced that it was examining `strategic alternatives'' to its ownership of Cowles Media Co, and The Star Tribune, its flagship newspaper, including a possible sale that could reap at least $1 billion. There has been only a very thin market for the relatively few shares of Cowles Media that are traded, and the price of the stock today, in the mid-$50s - is still undervalued compared with the more than $70 a share that analysts think it would be worth in a sale. The Minneapolis StarTribune accounts for about two-thirds of Cowles Media's revenues, which was $517 million in the fiscal year ended March 29. The company also publishes a number of small magazines and business and marketing publications.
Cowles Media is not discussing its list of possible suitors, nor would its spokesman say whether the company had, in fact, tried and failed to line up a buyer before it announced its possible sale last month. Many analysts think a deal may be reached by Thanksgiving. The Washington Post Co. is considered to be the front-runner because it already owns 28 percent of the Cowles stock. Its treasurer, Jay Morse, said his company did not comment on potential acquisitions.
Also mentioned is Times Mirror Corp., owner of The Los Angeles Times and Newsday. Its chairman, Mark Willes, the chairman of Times Mirror, has been spinning off companies not directly related to Times Mirror's core media businesses since he came to the company two years ago. But he has said in the past that he would not be opposed to acquisitions that ``fit'' Times Mirror 's publishing and broadcasting interests.
c.1997 N.Y. Times News Service 23:38 EDT OCTOBER 12, 1997
Changes at Reed Elsevier Business Information
Folio, First Day reports of 100 job cuts, magazine and research-units being put up for sale and the establishment of new publishing divisions at Reed Elsevier Business Information, the sprawling Reed Elsevier PLC unit created by the merger of Cahners Publishing and Chilton Publishing. Company spokesperson Margaret Pantridge tells First Day that nine properties are being
divested in addition to the four computer magazines (Government Computer News, Government Computer News State & Local, Datamation and Reseller Management) previously announced.
The nine properties newly up for sale include: Chilton Research Services, a major operation serving Fortune 500 companies, and the Business Research Group, which is being lumped in with the divestment of the four aforementioned computer magazines; as well as seven other magazines including CabinetMaker; Cheese Market News; Dairy Foods; Furniture Design & Manufacturing; Instrumentation & Control Systems; Home Improvement Market; and Upholstery Design & Manufacturing.
Key personnel moves in a realignment of the Cahners-Chilton entities include the naming of three former Chilton executives to a steering committee: Lee Hufnagel, Andrew Weber and Bill O'Brien. Pantridge says the realignment "basically" establishes three magazine divisions: the 39-title manufacturing/new-product unit (among its notable titles are Design News and Manufacturing Systems); entertainment, communications and media, headed by headed by executive VP Mark Lieberman, who'll oversee Variety, Broadcasting & Cable, Publishers Weekly, Multichannel News and 18 other publications; and the 59-title business publications division, headed by executive VP Brian Nairn.
In addition to serving on the steering committee, O'Brien is chief operations officer of the entertainment/communications/media unit. Hufnagel's role is to coordinate the Cahners-Chilton integration. He and the rest of the management team report to Reed Elsevier Business nformation president/CEO Bruce Barnet, based in Newton, MA.
Cowles/Simba Media Daily 10/10/97
Copyright 1997 Cowles Business Media. All rights reserved.
News Corp. Chief Admits Setbacks
Speaking at News Corp.'s annual meeting in Adelaide, Australia, chairman and chief executive Rupert Murdoch offered shareholders an upbeat speech, but also admitted to some setbacks. In discussing News Corp.'s net profits for the year ended June 30, including millions in charges from HarperCollins, the News Corp. chief reported that the troubled book publisher would generate revenues of $700 million and "will be profitable, although not magnificently so." He conceded that the unit was a source of "a great deal of difficulty."
Cowles/Simba Media Daily 10/8/97
Copyright 1997 Cowles Business Media. All rights reserved.
Wiley to Acquire Van Nostrand Reinhold
New York, N.Y. October 9, 1997. Charles R. Ellis, President and Chief Executive Officer of John Wiley & Sons, Inc. (NYSE: JW.A and JW.B), the global publishing company headquartered in New York, today announced that it has reached an agreement with International Thomson Publishing (ITP), a division of The Thomson Corporation (TSE: TOC) to purchase the assets of its Van Nostrand Reinhold (VNR) operating unit, which is located in New York. The terms of the sale, which should close in the fall, were not disclosed; however, the transaction is subject to the Hart-Scott-Rodino waiting period.
VNR is a publisher of books and electronic products for professionals in architecture/design,
environmental/industrial science, culinary arts/hospitality, and business technology. VNR is known for its numerous "franchise" titles, which are regarded by many professionals as indispensable; examples include Ching's Architectural Graphics, Sax's Dangerous Properties of Industrial Materials, the Culinary Institute of America series, Kerzner's Product Management, and
Considine's Van Nostrand Scientific Encyclopedia.
Sulzberger Steps Down As NYT Chairman, Company Profits Up
The New York Times Co. announced on Thursday that Arthur Ochs Sulzberger, its chairman and CEO, has stepped down after leading the company for 24 years, and that in his place Arthur O.
Sulzberger Jr. has been elected chairman, effective immediately. The senior Sulzberger will remain on the board of directors as chairman emeritus, while his son will continue on as publisher of the company's flagship enterprise. In addition, president Russell T. Lewis has been named to the position of CEO.
Online Publishing Information:
Addison Wesley Longman and Headland Become Digital Media Partners for Distance Learning on World Wide Web
Addison Wesley Longman and Headland Digital Media, both Pearson companies, announced today an alliance to provide fully accredited educational materials from leading institutions to students via the World Wide Web. The venture will publish learning and teaching systems so that students of any age and from anywhere in the world can advance their academic degrees online. Leading universities and distinguished scholars and instructors will offer the curriculum.
The alliance is designed for students who want to take academic subjects such as business, mathematics, communications, and computer science by means of the Internet. The venture will also provide online solutions to help students develop the skills and training to succeed outside the classroom. Students will be able to download materials directly from the World Wide Web, thus reducing their costs of commuting and housing, and permitting flexible scheduling. The programs are expected to reach existing students and to extend fully accredited courses to students who might not otherwise be able to attain a college degree.
Each partner brings considerable expertise and industry-specific success to the venture. Addison Wesley Longman, through its global publishing business, has relationships with many of the most respected and highly regarded authors of educational texts. They have also fostered strategic
relationships with top academic institutions.
Earth's Biggest Bookstore Serves Millionth Unique Customer
SEATTLE, Oct. 14 /PRNewswire/ -- Amazon.com, Inc. (Nasdaq: AMZN) today announced it will be the first Internet retailer to reach the one-millionth new customer milestone. Celebrating its number one status in e-commerce traffic, the company today kicks off a two-week customer promotion "You're One in a Million at Amazon.com." In just two years, Amazon.com (http://www.amazon.com) has established itself as not only the leader in online booksellers but as the leading Internet retailer, according to the latest report from Media Metrix (formerly PC
Meter). With an estimated 4.5% of all Web households visiting Amazon.com during August, 1997, Amazon.com received more traffic than Internet giants wal-mart.com, QVC.com, and landsend.com combined.
SOURCE Amazon.com, Inc.
Dutch Publishing Merger Creates Formidable Online Business
The proposed merger between Reed Elsevier and Wolters Kluwer, would create one of the largest online legal, tax and public records publishers in the United States with 1996 online sales of $410 million, according to Electronic Information Report (EIR) estimates. The deal, if approved by shareholders, would bring together Reed Elsevier's LEXIS LEXIS and Wolters Kluwer's CCH Online services. EIR estimates LEXIS had 1996 sales of $345 million, while CCH Online generated $65 million in 1996. This places the combined properties a close second behind Thomson's WESTLAW online legal service, which posted sales of $450 million in 1996, according to EIR estimates.
Overall, the Dutch combination, to be called Elsevier Wolters Kluwer (EWK), would allow the
companies to overtake Thomson Corp. as the largest professional publisher in the world. EWK
would have pro forma sales of $4.66 billion in 1996. Thomson would be bumped to second place
with sales of $3.39 billion in 1996 and McGraw-Hill would move into a distant third with sales of
$1.37 billion in 1996. The merger, to be conducted as a stock swap, is expected to be completed
in the first quarter 1998.
Apart from size, the combination of CCH and LEXIS brings together complementary content,
according to Meryick Payne, senior partner at Management Practice, a professional publishing
consultancy. CCH's 700 print and CD-ROM tax titles would finally give tax and accounting
professionals, who as a group have shunned online access in favor of CD-ROM and print
products, a reason to try LEXIS-NEXIS, he said. LEXIS-NEXIS's has 839,000 online subscribers.
Conversely, LEXIS's strength in U.S. federal and state case law as well as its broad range of
specialized libraries in securities, banking, the environment, energy, international and public
records, could be the content boost CCH Online needs to invigorate flagging sales. In its second
year under the ownership of Amsterdam-based Wolters Kluwer, CCH's 1996 legal information
sales were flat at $130 million, according to EIR estimates.
Cowles/Simba Media Daily 10/10/97
Copyright 1997 Cowles Business Media. All rights reserved
DID YOU KNOW:
Newspaper circulation has been declining relative to U.S. household formation for years, and today is only 57 million nationwide. Circulation had been falling by 0.5%-1.0% a year since 1987, but the drop accelerated to 2% in each of the last two years.
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