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Re: News on Our Car Magazine Industry : Like NASCAR, Strictly

To: <FastmetalBDF@aol.com>, <wester6935@home.com>, <squarerollbars@yahoo.com>
Subject: Re: News on Our Car Magazine Industry : Like NASCAR, Strictly
From: "Keith Turk" <kturk@ala.net>
Date: Fri, 9 Nov 2001 10:01:46 -0600
Yep Bruce that all sounds about right.... I'm sure if David Frieburber
wasn't on Jury duty he could further enlighten us into the state of the
Print media world.

This here computer has taken a huge bite out of their financial world... 
Magazines aren't what they used to be as a source of news and how to's... 
But in my opinoin they will always serve as a major force in our hobby.

As for the money side of this.... It's exactly what it's all about... No
matter who is in charge... nobody can do this if they are loosing money. 
Our support of those magazines which in turn support our hobby will see
them live into the future.   

Keith ( yeah I pimp Hot Rod Magazine.... but I do it because they have
shown a significant interest into the sport of Land Speed Racing... ) ( Ps
Rod and Custom has been there too for many years when nobody else was)

----------
> From: FastmetalBDF@aol.com
> To: wester6935@home.com; squarerollbars@yahoo.com
> Cc: land-speed@autox.team.net
> Subject: News on Our Car Magazine Industry : Like NASCAR, Strictly forthe
BUCKS ???
> Date: Friday, November 09, 2001 8:51 AM
> 
> All:
> 
> I received word this morning that Primedia, publishers of Drag Racing
USA,
> have terminated publication of "Drag Racing U.S.A. Magazine".  This is
> unfortunate, but not a surprise, as the circulation for this magazine had
> been below the "live or die" figure for profitability for some time.
> 
> "DRUSA" was the new name given to the old "Bracket Racing USA" title. 
Dale
> Wilson was Editor of "BRUSA", and that title was combined into "DRUSA",
to
> provide a wider scope for the magazine and cover all of drag racing.  The
> new "DRUSA" title was edited by Steve Collison, who died suddenly last
year.
> The ultimate fate of current DRUSA Editor/Publisher Randy Fish and
Associate
> Editor Dale Wilson, both of whom are "good guys" and enthusiasts, is
unknown
> at this time.
> 
> For those who don't know, Primedia is owned by the
corporate-raider/pirate
> firm, Kohlberg-Kravits-Roberts.  "KKR", as they are known, was the major
> player in the RJR-Nabisco take-over.  This rather unsavory chapter in
> century-end business history resulted in the movie "Barbarians At The
Gate".
> 
> 
> Primedia now owns the majority of the magazine titles which cover the
> performance automotive marketplace.  They (Primedia) began several years
ago
> by buying Argus Publishing, whose flagship titles were Popular Hot
Rodding
> and Super Chevy.  
> 
> Next, they bought out McMullen Publishing, followed by CSK Publishing, a
> NJ-based publisher.  
> 
> Earlier this year, Primedia bought EMAP USA, which was the purchaser of
> Petersen Publishing.  
> 
> Petersen was the company originally founded by Robert E. Petersen,
> originator of Hot Rod and Motor Trend.  Wally Parks was an original
partner
> with "Pete", but left to head the fledgling NHRA.  In the mid-1990's Bob
> Petersen sold his company to a group of investors.  This new group
acquired
> Dobbs Publishing (Lakeland, FL), and took the new conglomerate company
> public about 3-4 years ago.  It was that group who sold to EMAP, a
> London-based media company, about three years ago.
> 
> OK, everybody still with me?  Come on now, wake up!  No naps!
> 
> EMAP owns many, many titles plus broadcast media in the U.K. plus a large
> number of non-English language titles in various European countries
> including the former Soviet Union members.  EMAP was eager to gain a
strong
> entry into the U.S. market.  Perhaps their eagerness was their downfall. 
At
> the time of the purchase it was widely assumed that EMAP paid far too
much
> for their new acquisition, Petersen Publishing.  The large debt
associated
> with this purchase was regarded as a millstone that would soon submerge
the
> hopes EMAP had for building an even larger publishing firm  in the U.S.
> market.  
> 
> As we know, the US economy slowed, ad revenues tanked and EMAP quickly
got
> into significant financial trouble over their highly-leveraged US
purchase.
> A British public company, EMAP had severe shareholder problems related to
> this purchase and they were forced to declare a "write-down" of 550
million
> British pounds!  The EMAP C.E.O., a gentleman named Kevin Hand, was
"sacked"
> as the Brits say, for his role as the primary champion of the EMAP
purchase
> of Petersen.  After that, the EMAP USA holdings were placed on the
market,
> for sale at a greatly reduced "fire sale" price.  
> 
> Primedia came along and made the buy-out for a fraction of what EMAP paid
to
> the investor group who sold Petersen!  Obviously, the investor group made
> out like the proverbial "bandits"!
> 
> Now Primedia owns nearly all of the slick-paper magazines that cover the
> performance automotive market.
> 
> Can you say:  "M-O-N-O-P-O-L-Y?"
> 
> The demise of the Drag Racing USA title is the third or fourth
euthanization
> of magazines recently performed by Primedia, and it won't be the last as
> this financial corporation seeks to return profitability to their balance
> sheet.  Bear in mind that these are "money men", with no interest or
stake
> in the performance automotive aftermarket, magazine readers, enthusiasts,
> racers or the companies who produce and sell to this market.  These are
> "bottom line" business people pulling the strings, and even the "car
> enthusiasts" still involved must jig to the dollar-sign fiddle, or seek
> their means elsewhere.
> 
> Sorry if I've bored anyone with all this detail, but the "Who's on first
in
> the automotive publishing world" scenario directly impacts this
marketplace,
> industry and hobby that many of us have a personal, vested interested in.
> 
> -Jim Hill

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