Ziff Davis to Stop Publishing Playstation Magazine, Enterprise Group May Be Acquired by Quadrangle
Ziff Davis Tuesday said its game group will discontinue the publication of Official U.S. Playstation Magazine following its January issue. The company said the print-only property no longer fits into its “strategic vision” for an “integrated media network” heavily focused on digital platforms.The magazine, which is licensed from Sony Computer Entertainment America, has been printed by Ziff for nine years. Ziff game group president Scott McCarthy said in a statement that the magazine has become obsolete due to the online capabilities that exist with Playstation 3.
“With this next generation of game consoles, the days of having to bundle a disc with a magazine to distribute games-related content are over,” his statement said. “And the disc has clearly been a major driver for consumer interest in premium-priced, platform-specific magazines in the past, when the magazine disc was the only way gamers could get such content.”
In its recent earnings report, Ziff said revenue for the game group in the third quarter of 2006 was $9 million, flat from a year ago. The EBITDA loss for the group of $500,000 was lower than last year’s EBITDA loss of $800,000, due to reduced costs associated with print revenues.
Ziff Davis owner Willis Stein & Partners is actively seeking a buyer or buyers for the company. Industry buzz says the enterprise group, deemed the most attractive of the company’s properties by analysts, may be acquired by the Quadrangle Group, which is headed by noted financier Steven Rattner. Quadrangle purchased IT job seeker site Dice.com last year.