And while Reed Elsevier (NYSE: RUK) CEO Sir Crispin Davis gave “cyclicality” as the main reason why he wants the B2B giant to get out of the Reed Business Information business, RBI CEO Gerard van de Aast defends the stability of the business, somewhat counter to what Davis said earlier. In an e-mail to staff, picked up by DHD, he argues about RBI’s “solid, sustainable, long term growth”, and that the business has “size, scale and financial stability”.
Then he goes on to defend the print business: “Our strategy has been very clear and effective. It is built around protecting our core print business, driving online growth and making sure we have the best people in the business.”
Tad Smith, CEO of the U.S. arm of RBI, also writes in an e-mail to staff that business will continue as usual. “The announcement this morning neither surprises nor worries me…The sale process will commence immediately, but it is unclear how long it will take to complete. For my part, I am committed to leading our business as your CEO during the sale process and thereafter.”
Meanwhile, here in the insular world of Hollywood, everyone’s talking about Variety being on sale, and then the possibility about Hollywood Reporter (despite Nielsen CEO David Calhoun denying any sale possibility for the biz media division here in this Fortune profile) also coming on the market. Variety has about $100 million in revenues, so wouldn’t be that expensive a business if sold separately. Some buzz about whether someone like NYT or even News Corp might sweep in to buy any of those. Maybe Zell’s still interested in spending more money in LA area.
Also still unclear whether RBI would be sold piecemeal by divisions (or sub-brands) or as a whole…a lot of what would happen to Variety and sister media pubs like Broadcasting & Cable and Multichannel News would depend on that. If sold as a whole, private equity players would be the prime candidates…then players like Incisive Media with Apax’s backing may also be interested. Incisive Apax and Guardian Media Group bought EMap’s B2B division for $2 billion in December. Besides PE and PE-backed players, also in the mix would be someone like London-based Informa, though it may not have enough leverage. Then some outlying names would be the combined Thomson-Reuters (NSDQ: RTRSY) and perhaps Pearson (NYSE: PSO). Also, is there a chance for a current management led-buyout? Stay tuned…
Incisive didn't buy Emap.
Apax and GMG bought Emap (or at least are due to buy it – the sale isn't complete).
Apax also own Incisive. However GMG do not have a stake in Incisive so it was announced that Incisive and Emap would not be merged.
John
You're right..thanks. Corrected.