Management presentations are underway in a highly selective process intended to conclude with the sale of the 11-title Primedia crafts magazine group, an informed industry source said yesterday.
, which announced last month that it intends to split itself into two separate public companies, is apparently pursing the simultaneous objective of opportunistic divestiture of its huge selection of consumer magazines.
The informed source said that Primedia retained Goldman Sachs recently and began contacting prospective crafts-group buyers;Time Inc.
are two;in the last month. Other Primedia enthusiast groups are being considered for divestiture as well, but the crafts titles are on the “fast track,” the source said.
Primedia executives were unavailable for comment at press time.
The informed source questioned Primedia’s apparent two-track strategy. “To have a selected divestiture of the segment while also pursuing a spin-out seems contradictory,” the source said. “They seem to be flailing.”
Under the spinout strategy, Primedia would split itself into two companies;one that would include the enthusiast magazines and the company’s education unit and the other comprised of the fast-growth housing. The intent, company executives have said, is to unlock shareholder value. Primedia, created in 1989 by giant equity firm Kohlberg Kravis & Roberts, parted ways with CEO Kelly Conlin last month. Primedia stock fell 35 percent to $1.98 after the announcement of Conlin’s departure and the new strategy. In the last week the stock has crept up to around $2.15 at press time.
[Editor's Note: Primedia owns a minority stake in Red 7 Media, the publisher of FOLIO:.]