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American Media Inc., the parent company of the National Enquirer, reached an agreement to sell the tabloid and two other publications.
Scott Olson / Getty Images
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Scott Olson / Getty Images
American Media Inc., the parent company of the National Enquirer, reached an agreement to sell the tabloid and two other publications.
Scott Olson / Getty Images
American Media Inc. has an agreement to sell the National Enquirer, following months of scandals involving the tabloid's ties to President Trump and his reporting practices.
The company announced Thursday it has reached an agreement with James Cohen, magazine distributor and son of the founder of Hudson News. The sale would include two other publications, World and National Examiner.
In a statement, the President and CEO of American Media, David Pecker, said that Hudson News had "the long-term vision necessary to ensure the growth of these brands." In announcing its intention to sell last week, AMI said it wants to focus on its brands for teenagers and active lifestyle.
The company was involved in the controversy surrounding Trump's presidential campaign, details of which were revealed following federal investigations.
As part of an agreement with federal prosecutors in New York last year, AMI admitted that it helped arrange a payment to former Playboy model Karen McDougal to help Trump's campaign to keep her quiet. the Enquirer would have used a tactic known as "catch-and-kill" – buy the rights of a damaging story in order to bury it.
Pecker, who has deep ties with Trump, has personally agreed to work with federal prosecutors to avoid prosecution himself.
AMI has also encountered a recent controversy with the CEO of Amazon and Washington Post Owner Jeff Bezos, who accused the company of making him sing by threatening to post potentially embarrassing personal photos. Bezos said the company had asked him to stop an investigation into how the tabloid had obtained other private photos and texts from him and his girlfriend. AMI denied the charges and said it had started "good faith negotiations" with Bezos.
The company has been struggling financially in recent years and said the sale would reduce its debt to $ 355 million. The agreement also includes a multi-year service contract that, according to AMI, will generate "substantial costs" for publishing services, financial services and distribution, according to the company.
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