Hearst Magazines announced the closing of the U.S. portion of the $942 million purchase of Lagardère SCA's international magazine business in the following countries: the United States, Italy, Spain, Japan, the Netherlands, Hong Kong, Mexico, Taiwan, Canada and Germany. Finalization of the deal in Russia, Ukraine and the United Kingdom is expected shortly.
With the new acquisition, Hearst is the second largest U.S. magazine publisher after Time Inc. with 30.4 million circulation.
Hearst's CEO Frank Bennack and president David Carey in an internal memo they will aim to move the new magazines into the Hearst Tower within six to nine months.
Lagardère SCA will receive annual royalties from the use of the ELLE brand (still controlled by Lagardère) by Hearst (perpetual licence) in the following areas: magazines, Internet, mobile phones and all digital and audiovisual media.
In the U.S., Hearst gets publishing rights to Elle and Elle Decor, which will align the latter with House Beautiful and Veranda. Based on 2010 figures, these royalty payments should contribute (net of associated costs) about EUR 8 million per year.
According to MIN's June 2011 box scores, Elle Decor ranks #1 for total ad pages for the first half of 2011. Its market share for the same period is up +2.6 points to 25.7% over 2010. The magazine is number one year to date for ad pages with 524.8 pages, +10.4%.
News categoriesAll News >
Luxury Living Group's Alberto Vignatelli passes away at 75
The Novogratz return to NYC with holiday pop-up
SANDOW now major partner in Galerie Magazine
Thompson Traders family hosts designers for Dia de los MuertosSpecial Events | 5:07Thompson Traders family hosts...
Check out the inaugural Holiday House LondonShowhouses | 5:25Check out the inaugural Holiday...
Ginna ChristensenBusiness consultation
Ann Feldstein and Jennifer Powell TumpowskyPr marketing
Robert Allen and NYSID student competition
The Melding of Artistry, Material and Truth
Minted and WorkOf host art panel
- Tag Sale
- In Print