A Reuters article available on the New York Times web site about how magazines companies trying to sell themselves this year are having a tough time with the process noted that the parent of Worth magazine is negotiating with two buyers and could announce a deal soon.
The story noted that Malibu, Calif.-based CurtCo Media Labs LLC, which publishes Worth and luxury lifestyle magazine Robb Report, went on sale in April. The company also found that first-round offers did not come in as high as hoped, sources said. Goldman Sachs, hired for the process, declined to comment as did the company.
The story stated, “The companies are widely regarded as excellent businesses. The price issues they encountered were more a product of lofty valuations than of their operations.”
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Worth was started in 1992 by mutual fund giant Fidelity Investments, eliciting comments that the publication would play favorites to its parent company. Fidelity investment guru Peter Lynch was prominently featured in its advertising.
The magazine was sold in April 1999 by Fidelity to a group of investors. By 2002, after losing more than $50 million during the past decade, the publication began seeking new capital. The magazine eventually filed for bankruptcy court protection, and its assets were purchased in 2003 by the owner of the Robb Report, a glossy magazine filled with pictures of expensive cars and homes.
