PaidContent reports that McGraw-Hill has hired investment bank Evercore Partners to help it sell off BusinessWeek magazine. Potential buyers include Bloomberg and News Corp/Dow Jones, but any buyer would have to be willing to take on the magazine’s losses: it lost $20 million last year and could lose $50 million this year.
Rafat Ali at paidcontent reports:
The key, according to Roland DeSilva, managing partner at media investment bank DeSilva & Phillips (and a former exec at MGH), who I spoke to last week on this, is that MGH would have to move beyond positioning it just against Fortune and Forbes, and look at the full digital spectrum of options covering business and finance. Valuation will be very difficult, and the buyer is going to have to determine of the future of the magazine, by making a judgement of the value of information BW delivers that makes it different and how they deliver it digitally, he said.
BusinessWeek is 80 years old this year and employs almost 190 editorial staff. Its ad pages last quarter dropped almost 40 percent year-over-year, and it and the rest of McGraw-Hill’s Information and Media Group saw revenue freefall 76.4 percent to $2.8 million.