Reed Elsevier is planning to spit up its publishing unit and sell of the US-based and European businesses separately, a source tells Rafat Ali. Apax Partners, which discussed a deal for the whole unit, has now taken itself out of the bidding.
Analysts expected all of Reed Business Information to fetch anywhere from$1.96 billion to $2.6 billion, or 8x to 11x 2007 operating income of $233 million. Now Rafat reports the smaller US unit, which includes 80 trades like Variety, Publisher’s Weekly and Broadcasting & Cable, is being shopped separately for $500 million.
The former publisher of Variety, Charlie Koones, recently joined PaidContent’s board.
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