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BLOODTIDE
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You guys should get a kick out of this!
I'ts from the Nov 28 Business section of the New York Post.
Finally, there will be magazines for space aliens who want to pump iron and take steroids. American Media agreed to pay a high price, $350 million, to the Weider family for its stable of magazines that includes Muscle & Fitness, Shape, Mens Fitness, Flex, and three others.
Cypress Group, which was backing former Times Mirror executive Jason Klein, was the under-bidder.
American Media will combine the new titles with its current stable: the National Enquirer, Star Magazine, and the wacky Weekly World News.
The Weider family will be minority investors in AMI and Joe Weider will get a seat on AMI board of directors.
The Weider family is expected to end up with about a 10 percent stake in AMI. The winning bid is a multiple of 13 times earnings for a company with cash flow of $27 million on revenue of $175 million - considered a high price tag in the current market. "It's a nosebleed multiple," said Klein.
but American Media Chairman David Pecker insisted that tax breaks actually lower the real cost to him to around $290 million. Combined with the cost savings he can wring out of the company, the real cost to his company drops even further, he insisted.
The deal will be financed with $140 million in bank dept and $150 million in public bonds, said Pecker.
The deal boosts Weider's pro for-ma annual revenue from around $375 million to a combined $550 million.
While AMI won, the question on the minds of some rivals is whether Pecker and his chief backers at Evercore - Austen Beutner and Roger Altman - paid far more than they needed. The deal was not finalized until early yesterday morning, "I'm going to invest and build said Pecker.
I'ts from the Nov 28 Business section of the New York Post.
Finally, there will be magazines for space aliens who want to pump iron and take steroids. American Media agreed to pay a high price, $350 million, to the Weider family for its stable of magazines that includes Muscle & Fitness, Shape, Mens Fitness, Flex, and three others.
Cypress Group, which was backing former Times Mirror executive Jason Klein, was the under-bidder.
American Media will combine the new titles with its current stable: the National Enquirer, Star Magazine, and the wacky Weekly World News.
The Weider family will be minority investors in AMI and Joe Weider will get a seat on AMI board of directors.
The Weider family is expected to end up with about a 10 percent stake in AMI. The winning bid is a multiple of 13 times earnings for a company with cash flow of $27 million on revenue of $175 million - considered a high price tag in the current market. "It's a nosebleed multiple," said Klein.
but American Media Chairman David Pecker insisted that tax breaks actually lower the real cost to him to around $290 million. Combined with the cost savings he can wring out of the company, the real cost to his company drops even further, he insisted.
The deal will be financed with $140 million in bank dept and $150 million in public bonds, said Pecker.
The deal boosts Weider's pro for-ma annual revenue from around $375 million to a combined $550 million.
While AMI won, the question on the minds of some rivals is whether Pecker and his chief backers at Evercore - Austen Beutner and Roger Altman - paid far more than they needed. The deal was not finalized until early yesterday morning, "I'm going to invest and build said Pecker.
