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Meredith
Corp.
CDM -0.47%
Said Thai businessman Chatchaval Jiaravanon has agreed to purchase Fortune magazine for $ 150 million in cash, a sale that gives the storied business a new owner for the second time this year.
Like many of its peers in media, Fortune has grown to be one of the biggest markets in the world.
The 88-year-old magazine, which first published after the 1929 stock-market crash, continues to carry weight with business elites, reflected in the attention paid to rankings such as the Fortune 500, special issues like "World's Most Admired Companies" and cover profiles of prominent chief executives.
"Our vision is to establish Fortune as the world's leading business media brand," Mr. Chatchaval said in a statement provided by Meredith. "With more committed investment in technology and brilliant journalism, we believe the outlook for further profitable growth is excellent both for the publication and the business events."
Mr. Chatchaval serves on the board of public companies, including True Corporation Public Co., a Thai telecommunications company.
Alan Murray, who will continue to serve as Fortune's president and is adding a new role in the new ownership, said Mr. Chatchaval is a member of the Charoen Pokphand Group, a Thai conglomerate.
"Mr. Murray said in an interview. "He likes our mission and will support our editorial independence and wants to see us more and get bigger."
Mr. Murray said the new owner would not play a role in day-to-day operations.
Meredith is selling Fortune at a substantial premium. 12 months, according to S & P Capital IQ, Fortune at 15 times estimated Ebitda.
Fortune's staff will continue to work primarily out of New York City, Mr. Murray said, and has already started looking for new office space.
"It will give us capital to invest and grow, which is what we need," said Mr. Murray. "Fortune is unique among legacy media companies in that it now gets the majority of its revenue from digital and conferences. We are poised for growth and we are eager to invest. "Mr. Murray said Mr. Chatchaval is focused on opportunities in China," which is already a significant part of our business. "
Mr. Murray has served as Chief Executive Officer of the group within Meredith that includes Fortune, Money and Sports Illustrated. "This deal came together very quickly" he said. Mr. Murray, a trainer editor at The Wall Street Journal, said Mr. Chatchaval reached out to him last month through mutual acquaintance.
The deal is expected to be completed by the end of the year.
The first issue of Fortune, dated February 1930, with a price of $ 1. Early writers included Archibald MacLeish and James Agee, and the magazine would be known for leading business executives.
Bookmark and Share magazines and would do better under other owners.
Meredith in September agreed to sell $ 190 million to Mark Benioff, co-founder of Salesforce.com, and his wife, Lynne Benioff. That sale closed Oct. 31.
Fortune's new owners facing daunting challenge. Like many publications, Fortune's revenue from newsstand sales and print ad pages have declined in recent years. Through September, print ad pages were down 26% to 485 pages compared with the same period a year ago, according to Publishers Information Bureau data.
To counter that decline, Fortune has focused on digital advertising and on boosting its events-related revenue. The publication expects to host 11 conferences this year, up from eight in 2017.
"It's got the power of an iconic brand," said David Fishman, a magazine consultant.
Last year, 62% of Fortune's revenue came from digital advertising and its conference business, according to Mr. Murray.
Mr. Murray said the publication is expected to generate $ 10 million in Ebitda on revenue of nearly $ 100 million in 2018.
Fortune has reduced its frequency to 12 issues this year from 16 in 2017. Its total paid and verified circulation fell 13% to 752,202 for the six months ended June 30 compared with the same period a decade earlier, according to the Alliance for Audited Media .
On the digital front, Fortune.com's audience declined to 12.1 million in 2016, according to media measurement firm
comScore
Inc.
Other leading publishers are facing similar headlines when it comes to newsstand and print advertising revenue. Condé Nast, a unit of the company, is one of the best companies in the world. Condé Nast has its annual revenue will decline this year.
Once the fortune is completed, Meredith will have sold $ 340 million. The company is still negotiating Sports Illustrated and Money. Meredith said its goal is to repay $ 1 billion of debt in the fiscal year ending June 30, 2019.
Write to Jeffrey A. Trachtenberg at [email protected]
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