Last week, Hearst Magazines and Conde Nast announced a joint venture to manage various back-office functions at both companies, including production, procurement and circulation. The company, called PubWorx, will also seek to take on work from third-party companies. Folio: reached out to David Carey, president of Hearst Magazines, to elaborate on his vision for the venture.
Folio: In a few words, what’s the primary aim of the new venture?
David Carey: The main economic opportunity is the efficiencies gained through shared procurement and processes, and the opportunity to add external clients in the future, which will create a network effect which will benefit everyone.
Folio: What impact will this have on existing jobs?
Carey: The job reduction component is small piece of the savings, and the head count reductions will be modest.
Folio: Can you share any numbers?
Carey: The specific revenue targets, and savings, are not public numbers.
Folio: What are the staffing plans?
Carey: While PubWorx starts with 130 employees, over time we expect that number to grow substantially, as new clients join.
Folio: Is there an overarching vision for this move?
Carey: Conde Nast and Hearst plan for this to be a center of excellence for the industry, with a full range of back-office services that will particularly benefit medium-sized publishers.
Folio: What was the genesis for this decision?
Carey: Hearst and Conde Nast already operate several joint ventures, we’re often in contact about those businesses, and PubWorx was a natural outgrowth of that.