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
///
/// land-speed@autox.team.net mailing list
/// To unsubscribe send a plain text message to majordomo@autox.team.net
/// with nothing in it but
///
/// unsubscribe land-speed
///
/// or go to http://www.team.net/cgi-bin/majorcool
///
///
|