Chicago Tribune Buys Chicago Magazine From Primedia
Posted on August 2, 2002
Primedia Inc. has completed the sale of Chicago magazine for $35 million in cash to an affiliate of the Chicago Tribune Company. Primedia said it will use the proceeds from the sale to reduce its debt and strengthen its balance sheet. Primedia has been struggling this year and its shares are trading near the $1 per share range. In 2002, Primedia has also ceased publication of Teen magazine; sold its Modern Bride Group to Conde Nast; and cut jobs to reduce debt.
"Chicago magazine brings another dynamic dimension to Tribune's robust array of local media choices. It is a clear leader in providing entertainment and other helpful information to its loyal readers and delivering excellent results for advertisers who target this very desirable audience," said Scott Smith, president and CEO of Chicago Tribune Co. and publisher of Chicago Tribune. "We look forward to working with the management and staff of Chicago magazine to continue to improve and grow the publication."
Chicago magazine was established in 1952 and acquired by Primedia in 1995. It is one of the most popular city magazines with a circulation of 182,000 and readership of 1.5 million. The magazine provides local entertainment and dining listings, as well as guides to shopping and real estate.
John Carroll, publisher of Chicago magazine, and Richard Babcock, editor, will remain in their current positions with the magazine. "We're excited about becoming part of the Chicago Tribune Company and see great possibilities in joining forces and working together," said Carroll.
Babcock added, "This is an excellent opportunity for us to gain a wider audience for our stories and our talented writers."
Chicago Tribune Company publishes the Chicago Tribune, Exito and, through subsidiary Chicagoland Publishing Company, creates and markets other niche publications. Chicago Tribune has a daily readership of 2 million and nearly 3 million each Sunday.