Forbes Courting a Buyer?

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Grappling with declining print revenue, Forbes Media LLC has put itself up for sale, reportedly seeking a $400 million to $500 million ticket price, according to Ad Week.

With Publishers Information Bureau figures showing a 7.5 percent decline in print ad revenues over the first three quarters of 2013 compared to year-ago numbers, Forbes has lined up the Deutsche Bank to explore a sale. The esteemed business journal was established in 1917 by B.C. Forbes and remained the sole property of the Forbes family until Elevation Partners, a private equity firm, became a minority partner in 2006.

Since then, Forbes defaulted on a $90 million credit line, necessitating the sale of private family assets, including an island in Fiji, which led to the 2010 ouster of Steve Forbes as CEO and hiring of Mike Perlis, according to the Ad Week article.  Perlis cited comscore worldwide figures that shows Forbes.com unique visitors skyrocketing to 26 million from 12 million over the past three years as an indication that the media company would be attractive to suitors.

The Ad Week article speculated that a private equity firm would be most likely to take the plunge in acquiring Forbes Media LLC. The company has shifted its emphasis to its conference business and online edition, noting that its digital magazine provides more than half of its ad revenue.

Consumer Magazines' Ad Pages Continue Freefall in 1Q of 2013

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Half of the 213 consumer magazines tracked by Publishers Information Bureau ("PIB") suffered declining ad pages during the First Quarter of 2013 compared to the same period a year ago, MediaPost.com reported today.

Although the painful drop-off in ad revenues was widespread, celebrity, lifestyle and women's interest periodicals were particularly hard hit, according to the MediaPost article. Ladies Home Journal experienced a 28 percent decrease to 122 ad pages, Maxim saw a 36 percent shrinkage of ad pages down to 53, Forbes dropped 19 percent to 266 ad pages and OK Weekly was not okay with  22 percent fewer ad pages at 263, compared to the periodicals' respective figures for the first three months of 2012.

The PIB survey found that 67 of the titles it tracked lost 10 percent of their ad pages in a 2013 to 2012 comparision, and 31 periodicals sustained more than a 20 percent decrease in First Quarter 2013 ad pages.

Only bad dogs were heartened by the latest financial news, because it won't hurt as much when owners rap them on the nose with ad-deprived, rolled-up magazines.

Magazines Running Out of Ammo

The Sporting News photo of Jay Hughes (Photo credit: Wikipedia)Advertising pages in the consumer magazine sector plunged 8.2 percent in the First Quarter of 2012, compared to First Quarter results last year, according to Publishers' Information Bureau (PIB) statistics cited in Folio (www.Foliomag.com).


Sporting News (a "TUOL" staff fave during their formative years) suffered an 80.1 percent drop-off in ad pages. Overall, the "women's magazine" category performed badly in the First Quarter, PIB numbers reflect, as titles such as O! The Oprah Magazine, Ladies Home Journal and Better Homes & Gardens all endured fewer ad pages. Marie Claire was a shining exception, boasting a 10 percent increase in ad pages.

The numbers weren't much better for news magazine not named Bloomberg, as The Economist slipped 4.8 percent in ad pages over the first three months of 2012, while Time's ad pages sank 21 percent. Automotive and food products were advertising categories that severely cut back on magazine advertising, as only toiletries & cosmetics and apparel & accessories stepped up a periodical presence during the First Quarter of 2012.

Magazine Ad Pages Decline 3.1 Percent Over 2010 Figures

Image via WikipediaIndividuals may resolve in January to slim down, but magazine publishers are praying for thicker periodicals in 2012, following a disappointing report released this week by the Publishers Information Bureau (PIB) reflecting a 3.1 percent drop in ad pages in 2011.

According to an article in The New York Times, a statement by the Association of Magazine Media, which oversees PIB, blamed poor results in the Third and Fourth Quarters during which "advertisers grew more skittish," that negated gains in ad pages over the first half of 2011. Nine of the 12 categories tracked by PIB showed a decrease in ad pages.

Although the grim news continues for magazines (see "TUOL" post 1/14/10), the Times article acknowledged that magazine ad pages at least outshine newspaper ad pages.

'Bleak House': The Story of 2009 Magazine Ad Revenues

If you were shocked that Mark McGwire used steroids and never saw the ax falling on Jay Leno's prime time foray, you may be surprised by the Publishers Information Bureau 2009 magazine revenues report that reflects a near 26 percent decline in ad pages and revenues plummeting by 18 percent compared to the previous year. Try visualizing the loss of 58,340 advertising pages and the pall cast over an entire industry.

Since 2007, when  PIB began its quarterly tracking of ad pages and revenues, 10 of 11 quarters have seen shrinking numbers. In fact, only 18 consumer magazines reported ad page gains in 2009, chief among them, People's Style Watch, Ok!, Bonnier, Saveur, and Family Circle. Hardest hit were boating magazines and Architectural Digest.

Read it and weep, but for Heaven's sakes, at least read it.

Prospering Periodicals in Poor Publishing Climate

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"TUOL" posts have been awash in bleak news of declining ad revenues and faltering magazines such as Business Week and TV Guide, but some journals are still bringing the juice.

Admittedly, the 243 magazines tracked by Publishers Information Bureau ("PIB") showed a 28 percent drop in ad pages during the first half of 2009, compared to the first six months of 2008. But some periodicals increased ad pages in 2009 when matched against 2008 figures, according to PIB.

Don't look for the Utne Reader, Atlantic Monthly, Harper's or any political or news magazine among the prospering periodicals. Instead, the winners include Fitness, Muscle & Fitness, Country Weekly, Sports Illustrated for Kids, Cooking with Paula Deen, OK!, Family Circle, Organic Gardening and Scholastic Parent & Child.

The secrets to their success vary, ranging from attractive re-designs to Scholastic Parent & Child's decision to run ads on their cover. Venture capitalist alert: this blogger is considering a start-up computer magazine that will focus on food, parenting and fitness Websites. Make your blank checks payable to "TUOL."