JEGI Represents Future plc in Sale of US Music Division to NewBay Media
New York, January 12, 2012 Future US, Inc., the San Francisco-based subsidiary of Future plc (www.futureplc.com), has sold its US Music Division, including Guitar World, Revolver and Guitar Aficionado and the related web sites and events, to NewBay Media LLC (“NewBay”) (www.nbmedia.com). The sale of the US Music Division is consistent with Future plc’s strategy to reduce its scale of exposure to the US, which it set out during the release of its preliminary financial results.
The acquisition establishes NewBay Media as the world’s leading publisher of guitar magazines, digital media, and events. Reaching over five million music and audio professionals and enthusiasts every month, NewBay’s expanded network now offers unsurpassed reach and effectiveness for its advertisers and partners.
Guitar World is the largest guitar magazine in the world. It features artist interviews, gear reviews, and guitar news, as well as lessons and transcriptions in all popular genres. Revolver is the premiere heavy metal rock magazine with in-depth coverage of trend-setting artists, bands, and the heavy metal lifestyle. Guitar Aficionado, now in its third year, is the first magazine to celebrate the luxury lifestyle using the guitar as the common passion point. The annual Golden Gods Awards, Rock & Roll Roast, and a growing portfolio of Guitar Aficionado events will now be produced by NewBay.
Mark Wood, CEO Future plc, said, “Guitar World, Revolver and Guitar Aficionado are outstanding magazines, which have made a tremendous contribution to Future’s US business. NewBay Media, with its strong market position and passion for music, is now the perfect home for these superb brands.”
Mr. Wood continued, “The sale represents a big step forward in our strategy to streamline our US business and return it to profitability by 2013. The merger of our mainstream US operations and our UK business is on track, and we are making good progress in reducing costs.”
“These titles, and the talented team behind them, represent the pinnacle of guitar enthusiast publishing, and we are thrilled to welcome them into the NewBay family,” stated Steve Palm, CEO, NewBay Media. “This acquisition furthers our goal to offer our readers and advertisers unparalleled depth and breadth within the music and pro audio communities.”
“The markets we serve are diverse and deep,” added Palm, “as are the reach and editorial missions of all of our music brands. With only 2% overlap in circulation and distinctly independent editorial missions, we intend to continue to publish each of our existing and acquired magazines.”
This marks the fifth major acquisition of brands by NewBay in as many years, adding select assets from United Business Media’s CMP Entertainment Media division in September 2006, from IMAS in July 2007, from Reed Business Information-US in December 2009, and from Penton in February 2011. All of the previously acquired titles continue to thrive as part of the NewBay Media portfolio.
The Jordan, Edmiston Group, Inc. (www.jegi.com), a New York-based independent investment bank for the media, information, marketing services, and technology sectors, represented Future plc in this transaction and acted as its exclusive financial advisor.
About NewBay Media LLC
NewBay Media’s market leading brands are centered on five vertical markets: Pro Audio; Broadcast & Video; Musical Instruments; AV/Consumer Electronics; and K-12 Education. NewBay publishes and produces more than 40 publications and show dailies, 50 web sites, 30 daily and weekly e-newsletters, three expos and more than 50 custom publishing efforts annually. NewBay reaches more than eight million readers in print and one million online and in person globally, in more than 100 countries. NewBay is an affiliate of the Wicks Group of Companies, L.L.C. (www.wicksgroup.com), a New York-based private equity firm. For more information, visit www.nbmedia.com.
About Future plc
Future plc (LSE: FUTR) is an international special-interest media group and leading digital publisher. Founded in 1985 with one magazine, the company currently has operations in the UK, US and Australia, publishing 200 special-interest magazines, apps, web sites and events. Future holds market-leading positions in Games, Film, Music, Technology, Cycling, Automotive and Crafts. Future sells 2.9 million magazines each month; attracts more than 34 million monthly unique visitors to its web sites; and delivers over 100 digital editions and bespoke apps on tablet. Future exports or syndicates publications to 89 countries, making it the UK’s number one exporter and licensor of magazine content. For more information, visit www.futureplc.com.
About The Jordan, Edmiston Group, Inc.
The Jordan, Edmiston Group, Inc. (JEGI) of New York, NY is the leading provider of independent investment banking services for the media, information, marketing services and technology sectors. Since 1987, JEGI has completed more than 500 high‐profile M&A transactions for global corporations; middle-market and emerging companies; entrepreneurial owners; and private equity and venture capital firms. For more information, visit www.jegi.com.