Cygnus Exploring a Sale
Co-CEOs say company has 'been approached.'
SEE RELATED POST: Cygnus Co-CEOs in Penthouse Meeting
Cygnus Business Media, one of a dwindling number of old-line multi-market b-to-b publishers that has not had layoffs in recent months, is bucking the soft M&A market and exploring a potential sale, its co-CEOs, Tony O’Brien and Carr Davis [pictured right], told FOLIO: Wednesday.
Speaking during an interview in New York, Davis said the company, owned by the private equity firm ABRY Partners, has been approached with inquiries and is exploring “a process.”
Cygnus went on the block in 2006 but subsequently pulled off the market that year.
Davis framed the potential divestment carefully, saying that ABRY had not put the company on the block, but rather was responding to inquiries. “There is no sale because there is no buyer,” he said. “There was an indication of interest and we are pursuing it. The reason for the interest, we heard, is because of the innovations we’ve done.”
Davis said the company increased e-media revenue by 60 percent from 2006 to 2007, and from 4.5 percent of total revenue in 2006 to 10 percent of total revenue in 2007. “Getting that number to 15 percent is as good a target as any for the short term,” Davis said.
Cygnus has been buffeted by several high-profile departures in recent months, and a lingering morale challenge stemming from companywide salary cuts last September. (Among the departures were key staffers from the company’s aviation
division and Shari Dodgen, who was one of the company’s five brand
directors.)
But Davis points out that even though salaries were reduced temporarily, the company’s headcount remains the same.
Cygnus has about 60 magazines and Web sites, and generates about $120 million in annual revenue.
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COMMENTS: 19
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How?
Submitted by Anonymous on Wed, 06/11/2008 - 16:50.How can the headcount be the same, with all the departures that have happened in the past several months?
Easy
Submitted by Anonymous on Wed, 06/11/2008 - 21:34.Cloning.
no layoffs
Submitted by Morons on Thu, 06/12/2008 - 09:06.The people who left are being replaced. There have been no layoffs at Cygnus. Pay attention.
That's right...
Submitted by Anonymous on Thu, 06/12/2008 - 10:51.all those people let go last July was a reorganization....that was not a layoff --- so lay off man.
odd censorship
Submitted by Anonymous on Thu, 06/12/2008 - 13:44.Why are the replies that defend Cygnus being removed? I'm not even paid to defend the company. What's the value in permitting only the negative and often misleading replies remain?
Hiring freeze...
Submitted by Anonymous on Thu, 06/12/2008 - 14:13.<
I left three years ago and I still haven't been replaced.
Dig deeper.
Submitted by Anonymous on Thu, 06/12/2008 - 14:16.You start out your story with a very positive statment that Cygnus hasn't had any layoffs. Based on the stories you have published over the last twelve months you might have followed up your statment with a question of how they avoided layoffs.
Over the last five years Cygnus has avoided layoffs and opted to take employees paychecks to help pay their loan convenants and erase losses from poor management.
You might ask why have they taken this approach? Could it be that they are already a lean and mean company with two or fewer editors per publication, sales assistents that serve in excess of 20 publisher and/or sales people. Publishers or Group Publisher or Brand Managers, etc.. that handle 5 to 6 titles. Who exactly would they layoff?
It also seems odd that Mr. Davis and Mr. O'Brien would have more information on potential buyers than having "heard" about aquisition interest.
I hope they can work out a deal and get an invester involved that will listen to employees, respect them, and stop abusing them because they "work in Fort Atkinson, Wisconsin and don't have anywhere to go."
Clearly they do have somewhere to go. Across the street to start their own publications in direct competition to the management that can't seem to stop abusing them.
re: odd censorship
Submitted by Jason Fell on Thu, 06/12/2008 - 14:45.a number of comments throughout the site were temporarily unpublished as we adjusted some programming. the issue has been resolved. sorry for the confusion.
The next purge?
Submitted by Anonymous on Thu, 06/12/2008 - 14:56.When it comes to getting Cygnus lean and mean for the next regime, start the polling at the bottom, rather than at the top. Being one of the former Cygnus rats that found another ship to swim to, I know that the lowest people on the corporate totem pole have a very good handle on who is performing and producing, and who is phoning it in. People don't mind a boss that demands the best from them,, so long as they will work hard themselves and not allow the slackers to stay around because they're afraid to fire them. Want to know who your good managers are? Ask the managed.
Hilarious. Must have meant same headcount as yesterday
Submitted by Anonymous on Thu, 06/12/2008 - 14:57.Congratulations to the Cygnets, free at last (almost) (unless of course the buyer is moving the company to Dubai or wherever etc.)
Cygnus Is Lying..
Submitted by Cygnus Is Lying on Thu, 06/12/2008 - 15:43.And so is anyone claiming there have been no layoffs. I could name dozens of people who have been laid off without being replaced. I won't, out of respect for my former co-woerkers, but I could. And everyone at Cygnus knows who they are. The people who still work at Cygnus are being overworked, and the only reason people haven't been laid off in the last few months is that the owners have so stripped the company of resources that if anyone else were to be laid off, it would no longer be possible for the work to get done. Most magazines at Cygnus are operating at about half the staff they should have, and most employees have WAY too much work. Meanwhile, a few people who have never been good producers but who are in good with the upper management have been allowed to stay. This, like the Tuesday jeans rule...like the pay cuts...like the fact that the staff was PROMISED an hour-long lunch but then was never given it...like the many times the owners have lied to the staff...and, yes, like the LAYOFFS that HAVE happened...has only served to bring the morale even lower than it already was. Don't buy into the lies, Folio. Dig deeper when you hear corporate stuffed shirts obviously lying to you.
Move On
Submitted by Anonymous on Thu, 06/12/2008 - 16:10.All you ex-Cygnus employees and have an axe grind, it is time to move on!
there is a difference
Submitted by Anonymous on Thu, 06/12/2008 - 16:56.There is a difference between a "layoff" and being fired and/or someone leaving and then deciding not to fill their position. That happens every day in corporate America - give me a break.
Bravo Folio!
Submitted by Anonymous on Thu, 06/12/2008 - 18:18.I did not renew my Free Folio Subscription this year, instead I opted to receive other publications both free and paid subscription.
Folio has steadily impressed me as becoming a gossip rag and a strong proponent of negative commentary, and supposition in its editorial coverage; transcending to their blogging – fueling more negativity and cruel remarks. This has been evidenced with its relentless, hard and revengeful type coverage of Cygnus Business Media and its (new) leadership. An industry competitor was sold several months ago, Folio made little to no mention of the sale let alone the abrupt ousting of the previous family ownership (this would have been in keeping with gossip mongering).
We are an industry at work with a struggling economy, wouldn’t we be better served by Folio focusing its energy for our benefit.
Bravo You
Submitted by Anonymous on Thu, 06/12/2008 - 19:14.You should perhaps take the advice of the anonymous poster above and move on. If you've opted not to renew your Folio sub, and like the competition so much better, then why are you even logging onto this site? Yes, actually - bravo Folio.
news and blogs
Submitted by Anonymous on Fri, 06/13/2008 - 08:19.Let's put this in perspective. The possible Cygnus sale is news and Folio reported it. That's their job. The report was brief and to the point. The blogs are simply reaction and opinion to the story. If anyone is offended by the blogs...DON'T SCROLL DOWN!
Well said.
Submitted by Anonymous on Fri, 06/13/2008 - 12:49.People who don't want to read something are more than welcome not to. People who want to cancel their subscriptions are more than welcome to do so. Saying "I won't read this" or "Stop replying to this" is so counter-productive, as it keeps things going. Folio has been reporting on newsworthy stories, such as Cygnus potentially being sold. How others choose to respond is up to them, not Folio. That's how blogging works. You want to see a thread die? Okay--then don't keep it going. You don't like bloggers' responses? Then don't read 'em. You think people should give equal time to responding to non-Cygnus stories? Then respond to the non-Cygnus stories. But complaining about it won't help, and trying to censor people only keeps the fire lit. It's as simple as that.
How can the headcount be the same?
Submitted by Anonymous on Sat, 06/14/2008 - 15:42.How can the headcount be the same?
Try matching the names on the payroll to the employees at the co-CEOs' pathetic, bottom-feeding companies. Fewer bodies at Cygnus because they've been repurposed. Take a look around.
Who is going to personally profit from the new ad network, people? Check it out. Seriously. (Talking to you, Abry....)
What a great business strategy!
Submitted by Anonymous on Tue, 06/17/2008 - 08:53.I have several pubs that compete directly with certain Cygnus pubs. I personally know at least two people who were summarily layed off -- and the reason they were given was budget cuts -- higher level (ie. higher salaried) staff were cut, with lower level staff expected to pick up the slack.
Cygnus is artificially propping up the appearance of their pubs with outrageous ad deals (three for one is typical, according to some of my advertisers). They can do this by cutting the salaries of their already under-payed and overworked staff. Biy, that sure makes for a highly motivated work force.
Cygnus has long been known as a "sweat shop." The house of cards is getting ready to fall, and before all they have is scraps to sell off to pay debt, they are placing stories like this to make is appear like they are healthier than they are.
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