That media investment-banker made-in-heaven story got denied by Goldman Sachs, sort of.
Another banker picked up the theme, saying his firm had tallied nearly $20 billion in private-equity funds targeted at magazines. “I know the $1 billion Goldman’s supposedly putting up seems like a lot,” he said, “but in this context it’s not.”
Addendum (1:56 PM): Forbes.com weighs in with some heavy-duty analysis of Goldman’s rumored, but denied, magazine strategy.
“Goldman would be doing to the market exactly what [Time Inc. title] Real Simple has done to the market,” says Husni. “They’re doing antithesis of what is considered the market’s conventional wisdom. It’s always been assumed that to make a successful woman’s magazine you need to either have sex, chocolate or a celebrity on the cover. But Real Simple reached 1 million in circulation in just two years by putting things on the cover like an umbrella, a cat or a bowl of cereal. Goldman may be betting on magazines when everyone else thinks they’re dead.”