American Media Inc., home to celebrity publications like National Enquirer, Star, and Radar Online, as well as Shape and Muscle & Fitness, has been quietly “shopping itself” in the last few months.
According to the NY Post‘s Keith Kelly, the media company has managed to attract one potential buyer so far.
Private-equity investment firm Apollo Management “looked at it very hard for months” but showed concern about the state of the publishing industry.
Just how much could the deal cost Apollo? “It would likely be below $500 million.”
Not immune to the trend of shrinking revenue for magazines, AMI saw revenue fall 3% (to $412 million) in the last fiscal year, and the lower sales numbers continue to be “an ongoing concern.”
There is also that past pesky issue of bankruptcy, which AMI filed for late last year.
Sources tell the New York Post that if Apollo agreed to a deal, AMI would likely be folded into CKX, owner of “American Idol” and recently acquired by the firm.
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