RBI Begins Magazine Closures
Following grim memo, publisher folds three titles.
Reed Business Information Wednesday said it has ceased publication of three trade titles: Video Business, Manufacturing Business Technology and Industrial Distribution. The Web sites associated with these magazines also will be shut down.
According to a post on the Video Business Web site, the shutterings are part of a â€ślarger, ongoing strategy to divest itself of most of its business-to-business publications in the U.S.â€ť On New Years Eve, RBI CEO John Poulin sent a memo to staffers saying the company will need to close certain titles and lay off a number of employees during the first half of 2010.
When contacted by FOLIO:, an RBI spokesperson declined to say how many employees were laid off as a result of the closures. She did, however, indicate that RBIâ€™s DM2, effective April 8, will no longer manage or rent third party lists but will â€ścontinue to support internal list management through the resolution of the divestiture process.â€ť
The closures come less than six months after parent Reed Elsevier said it was putting the majority of the U.S.-based RBI titles back on the block after a failed auction of the entire group ended in late 2008 after bids were said to have fallen from approximately $2 billion to $1 billion. So far, the only divestiture to materialize was the sale last month of Broadcasting & Cable, Multichannel News and This Week in Consumer Electronics (TWICE) to Wicks Group-owned NewBay Media.