Categories: OLD Media Moves

Inc. and Fast Company magazines in red ink in 2005

That’s according to an article posted today on the BusinessWeek site by media writer Jon Fine.

Here are some snippets: CEO John “Koten’s memo said profitability in 2006 was unlikely, and goals for this year involve halving 2005’s loss and doing that again in 2007.

“‘If we can accomplish that…we should have a good shot at breaking even or turning a profit three years from now,’ wrote Koten. Joe Mansueto, who made his fortune as founder of Morningstar, has spoken about the magazines in similar terms, says an executive who has discussed the situation with him.”

And this: “In 2005, Inc. posted 817.4 ad pages, and Fast Company had 477. In 2000, by contrast, Inc. ran 1,735.3 ad pages, and Fast Company boasted 2,126.2. This nets out to cumulative ad page declines of 52.9% and 77.6%.

“Mansueto purchased the magazines in June of last year for around $34 million, plus the assumption of certain liabilities — some $500 million less than what G+J paid for them. Ironists take note: $34 million is roughly equivalent, according to the reckoning of executives and published reports at the time, to the combined profit of Inc. and Fast Company in that long-ago boom year of 2000.”

To read the entire story, go here.

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