Billionaire hobbies: David Carr and Andrew Ross Sorkin try to make economic sense out of Bruce Wasserstein’s “maddeningly vague” purchase for $55 million of New York Magazine, a property that is discribed as, “financially stuggling.”
The article quotes two magazine industry friends of mine:
Mark M. Edmiston of AdMedia Partners, a media investment bank, said, “Obviously, the price of the magazine is not justified by the facts.” The magazine, which in the mid-1990’s made about $8 million a year in profit, made about $1 million in profit last year on revenue of about $43 million. “This is a crown jewel,” said Scott P. Peters, managing director at the Jordan Edmiston Group, a media investment firm. “This is a publishing pet project and if you are from New York and plugged into the scene, this acquisition provides a lifestyle fringe benefit that others don’t.”
Does anything sound a bit odd about that paragraph? Well, it may sound odd to all but magazine industry financial wonks that the two people quoted work at different companies but one of them works at a company that has the other’s last name in its title. Trust me, it’s just how things work out sometimes.