American Media, the publisher of National Enquirer, Men’s Journal and Us Weekly, announced today that it has acquired 13 brands from Bauer Media USA, including the celebrity titles In Touch, Closer and Life & Style, and nine brands from the Bauer Teen Group.
Not included in the deal are the two best-selling magazines on the U.S. newsstand, Bauer’s First for Women and Women’s World, although In Touch was the seventh-most popular newsstand title in the second half of last year, according to data from the Alliance for Audited Media.
With the acquisition, AMI nearly corners the market on the celebrity-magazine category. In addition to Us Weekly, and now In Touch, Life & Style and Closer, it owns Star and OK. Meredith’s People remains the category’s behemoth.
AMI said in a statement that it secured bridge financing from existing investors to fund the acquisition, which would close around the first of July. After that, the statement said, it will refinance its existing debt.
Singer Vita Chambers arrives at J-14 Magazine’s “Intune: Rocks” concert at the Hard Rock Cafe in New York, Thursday, August 26, 2010. (AP Photo/Charles Sykes)
The Bauer titles—including the Bauer Teen Group, including J-14 and Girls World—will become part of the AMI Entertainment Group. Combined, the statement said, the new AMI Entertainment Group will reach 38 million readers and deliver the youngest median age in the category. Newsstand sales will average 1 million copies weekly with less than 25 percent reader duplication.
“Today’s announcement underscores AMI investor confidence in our business strategy as we continue to build and grow our Entertainment Group,” said AMI CEO David J. Pecker. “Despite newsstand sales declining 20 percent annually, both Bauer and AMI have continued to invest in the marketplace and we believe there is still a terrific opportunity to grow newsstand revenue.”
American Media has been on a buying spree, acquiring Us Weekly for $100 million and Men’s Journal, both in 2017.
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