BusinessWeek bidders balking at price

Keith Kelly of the New York Post reports Wednesday that bidders for BusinessWeek magazine think that McGraw-Hill is asking too much for the weekly, and that New York magazine owner Bruce Wasserstein appears to be the frontrunner.

Kelly writes, “According to people familiar with the matter, the sale documents, which were prepared by Evercore Partners, strip out some $20 million for corporate overhead, which covers, among other things, BusinessWeek’s share of the cost of McGraw-Hill’s pricey offices in Rockefeller Center.

“Bidders are said to be a little skeptical about that tabulation, arguing that even if the mag moves out of Rockefeller Center it still faces considerable real estate costs.

“What’s more, a new owner would likely have to cough up money to replicate things like circulation and fulfillment to keep the magazine going.

“Observers say Wasserstein is emerging as a front-runner for the title, even though the magazine assets he owns are currently struggling in a tough ad climate.”

Read more here. Note that BusinessWeek is not in Rockefeller Center, but in the McGraw-Hill building nearby.