Further to Katie Allen's report, Reed Elsevier dithers over arms fair exit, in which she mentions en passant that the company is to sell off its business information division (RBI), she does not spell out what this means in terms of magazine titles.
But it needs highlighting because, at least in US terms, they are high-profile magazines, such as Variety and Daily Variety, both of which are regarded as key Hollywood movie industry must-reads. Broadcasting and Cable performs a similar function for the TV industry. Publishers Weekly is the foremost weekly trade news magazine for book publishers, librarians, booksellers and literary agents. And New Scientist, a weekly which is based in London with US and Australian editions, is renowned for its coverage of science and technology.
So Reed's decision to divest itself of the titles, all of them considered successful and with good online offshoots, is significant. Its chief executive Crispin Davis said the move was aimed at "reducing exposure to advertising markets and cyclicality" that will enable the group to focus on its core business of "subscription-based information and workflow solutions." (Love that jargon)
But will the division attract a good price? Davis surely knows that in the current overall economic climate, allied to the pessimism surrounding printed media, it is not a good time to sell.
No wonder he conceded: "We are open-minded on the method and timing. Given the present market environment we may have to be a bit patient."
If you're thinking of making a bid, you might like to know that in 2007, RBI had revenues of £906 million, of which around 60% comes from advertising and 30% was earned online. Adjusted operating profit was £119 million. (Source: Variety)
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