Magazine Publisher Petersen May Put Itself Up for Sale
- Share via
Magazine publisher Petersen Publishing Co. said Tuesday that it is considering putting itself up for sale, a move that would probably draw bids from some of the biggest names in publishing.
Petersen, known for such varied titles as Motor Trend, ‘Teen, Sport and Skin Diver, said it hired investment bankers Goldman, Sachs & Co. as a financial advisor to help it “explore strategic alternatives.”
Los Angeles-based Petersen also said it would consider a “business combination,” a public offering or other similar transactions.
Publishing executives who have studied Petersen’s operations in recent years say they expect the bidding to begin at $300 million to $400 million, based on a multiple of 10 times Petersen’s estimated annual operating profit of between $30 million and $40 million.
Closely held Petersen has annual revenue of about $275 million. ‘Teen is its largest magazine, with paid circulation of 1.4 million.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
