Billboard Magazine, Hollywood Reporter ‘Hemorrhaging Cash’ As Owners Explore Sale
The owners of Billboard Magazine and The Hollywood Reporter are looking for an exit strategy. Last year, when Guggenheim Partners spun off its media properties to Eldridge Industries, it was clear that the magazines were hemorrhaging cash. Apparently the bleeding has continued, if not accelerated.
Eldridge Industries, the owner of music industry trade Billboard Magazine, TV production company Dick Clark Productions and The Hollywood Reporter have hired investment bankers Moelis & Co and Goldman Sachs Group Inc to carry out a review of its media holdings.
The move comes less then a year after Eldridge majority owner and CEO Todd Boehly stepped down as President of investment firm Guggenheim Partners, to start his own company, taking media assets Billboard, The Hollywood Reporter, Adweek and Dick Clark Productions with him.
After the move, Billboard added glitzy lifestyle coverage including high end fashion, real estate and watches, often with a ‘music’ theme to try to attract more ad dollars. Over time, many of its most knowledgeable writers were let go or moved on.
“Recently, Eldridge received unsolicited interest in one of its media assets,” Boehly told Reuters.
But Beohly is likely motivated beyond buyer interest in dumping the properties. Billboard and Hollywood Reporter are reportedly losing $20 million annually, according to Hits. The only serious interest from buyers, so far, is reportedly for TV awards show producer Dick Clark Productions, which could be worth between $500 million and $1 billion.