Pecker stands to win
Us Weekly sale to AMI is a ‘done deal’: source
T RONC’S bid to buy Us Weekly has collapsed — and National Enquirer owner American Media Inc. is now on the brink of getting the celebrity weekly, sources tell Media Ink.
“It’s a done deal,” one source close the situation said on Tuesday.
It is a stunning turn of events that has sent a new round of panic through the ranks at Us Weekly, currently owned by publishing magnate Jann Wenner. The fear is that up to 100 layoffs may ensue.
Survivors are also worried about the editorial environment as they move from the left-leaning Wenner Media operation into one controlled by American Media Chief Executive
David Pecker, an ardent supporter of President Trump.
Wenner and Pecker were close to a deal for about $90 million several weeks ago, but then Tronc, owner of the Chicago Tribune and Los Angeles Times, among other papers, materialized with a bid believed to be around $95 million
Just as suddenly, however, the deal with Tronc, controlled by Executive Chairman Michael Ferro and billionaire investor Patrick
Soon-Shiong, unraveled. Tronc, formerly called Tribune Publishing, has an avowed interest in expanding its celebrity news and increasing Web traffic. But it apparently discovered something in the due diligence stage that caused it to back away at the eleventh hour.
Tronc, Wenner Media and AMI declined to comment.
Staffers were rattled as the news swept through the newsroom on Monday and Tuesday.
“We thought we’d been saved from the slaughterhouse, and now it looks like we face the bloodbath that would come from AMI acquiring us,” one staffer told Media Ink.
“If this is correct, they will only keep a dozen or so of us, which will result in 100 layoffs,” the staffer added.
Sources think an announcement could come as early as this week.
Auction Time
The auction for Time Inc. — owner of Time, People and Sports Illustrated — is in the homestretch with bids due next week.
The wild card in the race is the bid by Jahm Najafi, a part owner of the Phoenix Suns, in a joint bid with Pamplona Capital, first reported by the Wall Street Journal Friday.
One Time Inc. investor speculated that those private equity players are “fronting” for another interested party with media experience. Who that could be remains unknown.
Meredith Corp., owner of Better Homes and Gardens, Shape and Martha Stewart Living plus local TV stations, appeared to be the lead candidate last week after a triumvirate of investors — Edgar Bronfman Jr., Ynon Kreiz and Len Blavatnik — dropped out. That trio was reportedly interested in bidding at least $18 a share but did not want to go beyond $20, sources said. Meredith is said to be primarily interested in the monthly titles such as Cooking Light, Real Simple, etc., and not the weeklies.
There is also said to be another publicly traded firm — which has yet to be disclosed — in the hunt.
Time’s stock on Tuesday closed at $19.10 a share, down 10 cents.
Gang-ing up
Don’t let the winter weather deter you from turning out for the Kelly Gang’s 13th annual charity fundraiser at Michael’s Restaurant on Wednesday (March 15). “You don’t have to be a Kelly to turn out to support this year’s charity, Concern Worldwide,” said Kelly Gang president Ed Kelly. He urges partygoers to bring their checkbooks for a charity auction. Among the items: two tickets and a backstage pass to “Sunset Boulevard” starring Glenn Close, plus dinner at Broadway Langan’s, provided by owner Des O’Brien. The Kelly Gang first convened there 18 years ago. Also being auctioned off: a mission patch and NASA pin that flew with astronaut Scott Kelly on his mission aboard the International Space Station as well as stunning pictures to be autographed by Kelly to the winner. The Kelly Gang has raised $700,000 for charities since it turned into a charity fund-raising organization.