M10 parent, Primedia form “new company” and combine Folio:, M10, other properties Flash: The rexblog has learned that later today, Red 7 Media, the company that publishes M10, and Primedia, which publishes Folio Magazine, Circulation Management and produces the Folio and Circ. Management shows, have formed a new company that will house these and other magazine and conference properties. Current management of M10 will manage and operate Folio and these other properties effective today.
Primedia has taken a minority equity position in this new company.
Update: Official announcement made:
Quote from press release:
Primedia Inc. today announced the divestiture of two of its high-profile media magazines, Folio: and Circulation Management, as part of a newly formed partnership with Red 7 Media, the owner of Folio: competitor M10.
The transaction closed today. Terms were not disclosed.
The partnership agreement comes just days after Primedia set off a news-media flurry with an announcement in its second-quarter earnings statement that it was evaluating strategic partnerships for three magazines, Folio:, CM and American Demographics.
Under the partnership venture with Red 7 Media, a new company will combine Folio:, Circulation Management and their related properties, including the Folio: and CM shows, as well as existing Red 7 Media businesses, including M10, Event Marketer magazine and its related shows. American Demographics is not included in the deal. The new company will be managed solely by Red 7 Media’s current leadership. Primedia will own a minority equity stake. The divested titles will be relocated to Red 7 Media headquarters in Norwalk, Connecticut.
Red 7 will publish the September-October issue of M10, and then combine that magazine with Folio: under the leadership of Tony Silber, who currently manages M10, and was a former editor of Folio: and publisher of Folio: and Circulation Management. Essentially, Folio: will assume the M10 editorial platform. The M10 brand will continue to be used in a variety of media. Circulation Management will continue to be published.
Both sides hailed the agreement. “We see great potential in integrating these properties and creating a platform for continued growth and expansion,” said Kerry Smith, CEO of Red 7 Media. “We’re also honored that a company of Primedia’s stature believes in our business vision and has taken a stake in our future.”
Kelly Conlin, CEO of Primedia, said, “A single organization for these properties will create the most comprehensive portfolio for both readers and advertisers in the publishing and media industry. This should help accelerate the growth of these properties and increase their value to the markets they serve.”
Smith said that the creation of both M10 in 2003 and Event Marketer in 2002 and their subsequent success demonstrate a new kind of publishing model that will be applied to Folio: and Circulation Management. “The lesson of both these launches is that if you create a great product, the market will coalesce around it,” he said. “That said, we have a somewhat unique approach to business development in that we don’t rely on traditional advertising as our primary revenue channel. Our model integrates advertising with business-development services and other fully integrated programs to deliver a more cohesive package to the customer and garner a larger share of their budgets. Plus, we feel that in a smaller, focused entrepreneurial environment, these products can thrive and generate profits.”