Reed Elsevier has put up its magazine unit, which includes Variety and more than 100 other trade pubs, up for sale. Who might be interested?
The Telegraph says Apax Partners is considering a deal for the unit. That would make some sense. Apax has been particularly aggressive in the trade publishing business; it already backs Incisive Media, a financial trades rollup; and along with Guardian Media, it bought EMap’s business magazines for nearly $2 billion last fall. Most important: It has access to enough capital that it wouldn’t have to rely much on the skittish debt market.
Ok. So how much? We’ve seen estimates as low as $1.96 billion – 8x operating income of $233 million. But at least one optimistic banker tells us he thinks Reed could fetch 11x for the package, or $2.6 billion.
See Also: Reed Selling Variety, Rest Of Trade Pubs
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