MAIN NEWS HEADLINES
June 1-15, 2005 Edition
FRANKFURT, Germany/05/25/05Meredith Corp., publisher of Ladies Home Journal and other major women’s magazines has acquired four magazines from German publisher Gruner + Jahr AG & Co. The sale, which totaled $350 million, includes Child and Family Circle, Fitness and Parents.
Gruner + Jahr’s withdrawal from the U.S. magazine market follows several setbacks in G+J’s efforts to build a U.S.presence. The company, which is 75% owned by the German media conglomerate Bertelsmann, is the sixth-largest magazine publisher in the United States.
Meredith is already a major women’s magazine publisher. The group also owns Better Homes and Gardens, Midwest Living, Traditional Home, and American Baby, purchased in 2002.
G+J, which expects to close the deal by the end of June, also has the option to sell its two other U.S. magazines, Inc. and Fast Company. If the two additional business magazines become part of the deal, Meredith apparently would sell them.
Gruner + Jahr’s U.S. unit is the sixth largest U.S. magazine publisher. The company was accused of circulation improprieties, and was involved in the failure of Rosie O’Donnell’s self-named magazine, and her subsequent lawsuit.