Rumor Mill: Penton May Be Cygnus Buyer
Speculation of possible sale continues.
07/07/2008 -16:53 PM
The latest gossip surrounding the apparent impending sale of Cygnus Business Media is that Penton Media (probably backed by parent Wasserstein & Co.) is the buyer. Today might be the final day of the due diligence process, according to three sources, all of whom are former Cygnus employees who heard the rumblings second hand.
When asked for comment, a Penton spokesperson wrote in an e-mail to FOLIO: that Penton has “nothing to say at this point.”
DeSilva + Phillips managing partner Reed Phillips—who along with fellow managing partner Roland DeSilva spoke with Cygnus co-CEO Carr Davis in a closed-door meeting last month—said he could not confirm the rumors.
If the buyer is in fact Penton/Wasserstein, one M&A source, who wished to remain anonymous, said the interest would make sense. “Wasserstein had an interest in Cygnus when it was on the block a couple of years ago. To acquire Cygnus, you have to be comfortable with a wide-ranging b-to-b company that serves a range of verticals, which obviously they are with Penton.”
Cygnus went on the block in 2006 but subsequently pulled off the market that year.
The source suggested that Cygnus could be asking for about $200 million to $240 million, or about 8x estimated EBITDA.
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Welcome to Folio
Submitted by Anonymous on Tue, 07/08/2008 - 08:15.Typical folio journalism at its finest.
Any rumors about business attire next Thursday?
Let me know when you actually have something, until then go work for The National Enquirer.
chillax
Submitted by Anonymous on Tue, 07/08/2008 - 09:55.It's obvious that there's a lot of interest in Cygnus and the sale, and there's a blog entry reporting that the buyer is likely to be Penton. How is that not news? I know I'm interested.
I knew the due diligence was in process, but I didn't know the buyer. News to me.
Lots of people are concerned and personally affected by what is happening with Cygnus. This isn't a story about A-Rod schtupping Madge.
What if..
Submitted by just wondering on Tue, 07/08/2008 - 12:46.What if this rumor is true? What will happen to the production staff of Cygnus? What about the circulation staff?
How about the accounting department?
Penton has all that in place already...don't they?
Folio Journalism
Submitted by Anonymous on Tue, 07/08/2008 - 13:08.Yes, "Welcome to Folio"--one of the few sources of honest business journalism left.
In December of 1995 when Folio reported that PTN (the former name for Cygnus) was up for sale, then-owner Stan Sills stood up at the company end-of-year holiday party and proclaimed emphatically, "This company is not for sale!" He then went on to call the Folio reporter who broke the story "a weasel."
Neither claim was true. A few weeks after Sills denied the story, some employees were told to tidy up their offices as prospective buyers might be coming in to inspect the premises.
The company was sold for $97 million about a year and a half later after lengthy negotiations.
Good Reporting
Submitted by Anonymous on Tue, 07/08/2008 - 13:49.That's just the point...rumor and speculation are bad, it causes unnecessary fear and panic.
Good reporting is based on fact...not rumor.
There is nothing here other than ex-Cygnus employee rumor as is typical. I dont need Folio for that.
I am not disagreeing that the Sale isn't news...just let me know when you have something tangible.
The only reason for posting garbage like this is to incite panic/traffic/ad revenue.
Look Guys
Submitted by Anonymous on Tue, 07/08/2008 - 15:35.It's dumb and dumber. Or I guess thief and better thief would be more accurate. What was Abry thinking when they put two ex-lawyers in charge of a company already in dire straits. The common worker at Cygnus is being abused and the "co-CEOs" (isnt that a made up title)are laughing all the way to the bank.
Fear and Panic?
Submitted by Anonymous on Tue, 07/08/2008 - 16:51.The possibility of a sale is not fearful for most of the employees at Cygnus... it is hope. With a new ownership there is the hope that they will invest in the company and the people. To build it to the point that it is worth more in five years so they can sell it again. The building period is great... so please begin the beginning of a next cycle of buy and sell.
Trashing Folio Just Makes You Look Stupid
Submitted by Relax on Tue, 07/08/2008 - 21:19.Those trashing Folio for reporting this is missing the point--this isn't a news story. It's a blog. And commenting on this is what blogs are all about. Perhaps, instead of insulting Folio, you should instead do some research to make sure you know what you're talking about.
Stupid is as Stupid does
Submitted by Anonymous on Wed, 07/09/2008 - 07:51.I agree with hope. Everyone is excited by what new owners can do for Cygnus and how we can finally be out from under this long term debt problem many of us have endured for nearly a decade. We need investment...mostly in our own people!
However, spreading rumor on a blog is no different than rumor in the lunchroom. Suggesting that a take-over is in the wind causes many departments to panic.
Its all ridiculous really because I do happen to know Penton is Not one of the interested parties. So much for Jason's sources.
Re: Stupid
Submitted by Anonymous on Wed, 07/09/2008 - 09:19.If you're such a knowledgeable source then why don't you contact Jason with the "real" scoop instead of starting/perpetuating this back-and-forth about blogging vs. news?
More Stupid
Submitted by Anonymous on Wed, 07/09/2008 - 10:32.Okay --- It is McGraw Hill ....
"Duh Diligence"
Submitted by Anonymous on Wed, 07/09/2008 - 17:31.Do you think that whoever is buying Cygnus--assuming that someone actually is buying Cygnus--has been following the Cygnus-related posts here, at Paul Conley's blog, and elsewhere as a part of the due diligence? The mind reels...
fire sale
Submitted by Anonymous on Thu, 07/10/2008 - 11:19.Maybe it means the buyer will be able to negotiate a good price. Carr and Tony -- celebrity couple name generator choices include Tarr and Carny -- and ABRY deserve to take as big a loss as possible. They chose not to invest and instead opted for letting it deteriorate.
Checklist for buyers:
1) CLOSELY analyze ad revenue numbers, including any deals with the new, sketchy ad network.
2) Inventory the payroll.
3) Interview staff to find out who's on the way out the door and which pubs are crashing because they're understaffed and/or demoralized.
In response to Duh Diligence
Submitted by Wolfgang on Thu, 07/10/2008 - 15:30.In response to Duh Diligence (love the "duh")...I really don't think it matters much to finance guys as to what is being said here on the blogs...afterall, it is just a blog and as such, by definition, nothing more than thought provoking opinion, speculation, back and forth banter. Having said that, it is unfortunate that some people get a little to wrapped around the axle and get offended. To those guys/gals I say "get over yourselves"...oh, and stop attributing everything to ex-cygnus employees...we aren't your problem...if I were you, I'd look closer to home.
Cheers,
Wolfgang
Get over it
Submitted by Anonymous on Fri, 07/11/2008 - 11:59......says the ex-employee posting on a blog about Cygnus.
If I were you I would get over Cygnus.
Caveat Emptor
Submitted by Anonymous on Sun, 07/13/2008 - 19:13.Any prospective buyer would be well advised to consider the content of this and other blogs laying bare the Cygnus carcass. A diligent buyer certainly would pay attention to input from a company's remaining assets, especially insofar as it describes the relentless abuse of the rank-and-file. As for disgruntled former employees, many were among Cygnus' most valuable (and therefore most expensive) assets, and many of their observations are absolutely spot-on. The fact that this company has systematically pared the muscle along with the fat for a period of years ought to be of paramount concern to any prospective buyer with a yen for carrion. Let the buyer beware.
Re: More Stupid
Submitted by Anonymous on Mon, 08/18/2008 - 11:35.Your source was obviously more inaccurate than the "rumor" that was posted by Folio. In the end, it was Penton/Wasserstein who did complete the due diligence.
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