Report: Variety-Avenue Capital Deal is Stalled

The New York Post has been doing a good job of keeping tabs on the ongoing saga of Variety’s sale. This morning, the paper suggests that Avenue Capital Group’s outlook has been changed somewhat by the due diligence process:

Sources tell Page Six that when Avenue’s bean counters recently ran Variety’s numbers on the deal, they wound up lowering their bid. “Everyone’s been balking at the price,” a Hollywood insider familiar with the sale told us, adding, “another problem is that [any new buyer] will then have to put money into it immediately, to bring Variety into the modern age.”

The Post also claims that while Ron Burkle is officially out, PMC’s Jay Penske is “still circling.” Hear that, Variety gang? Nikki Finke and Mike Fleming could still possibly become colleagues.

Previously on FishbowlLA:
Report: Variety’s New Owner is… Avenue Capital