Private Frazer’s Doomed Magazines

December 8, 2008

RBI’m about to lose my job

Filed under: B2B magazines — privatefraser @ 11:04 pm
Tags:

The RBI drama is approaching its cliffhanger ending – will the hero swoop in and save the girl, or will everything crash and burn?

If these paragraphs in the Independent’s report are anything to go by then both could be correct.

Reed Elsevier…is close to selling [RBI] to US buyout group Bain Capital for $1bn (£680m), after its main rival …the private equity group TPG dropped out of the auction…after its investment committee last weekend decided the acquisition was too risky in the current economic climate.
Rival media groups are surprised that Bain is keen to plough on with the deal, given the likely continued deterioration of advertising revenues. However, an industry source pointed out that Reed had not taken … costs out of the business, offering RBI’s new owner quick savings through restructuring.

If you (currently) work for RBI, you probably shouldn’t max out your credit cards this Christmas. Since the crash and burn of the RBI sell off, Lombard at the FT has written this His conclusion is similar to mine:

RBI can’t expect much love. The 10th of group operating profit and cash flow it provides is not that significant for the group, but it’s a less stable part of income than the core businesses supply. Life under potential private equity owners would have been hard. It may be no easier as a separate division under a prominent ‘For Sale’ sign.

Advertisements

Leave a Comment »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Create a free website or blog at WordPress.com.

%d bloggers like this: