Powder, Snowboarder Mags Get New Owner
SAM Magazine-Bonita Springs, Calif., May 17, 2007-Source Interlink Cos., a magazine, CD and DVD distributor controlled by Los Angeles billionaire Ron Burkle, has agreed to buy the Enthusiast Media division of Primedia, which includes Powder, Snowboarder, Hot Rod, Motor Trend and other special interest publications, for $1.2 billion.
Source Interlink last year began exploring its options, including acquisitions or putting itself up for sale. The deal to buy the Enthusiast group comes a month after Burkle was spurned in his efforts to buy media conglomerate Tribune Co.
"Content creation and ownership is now among the highest priorities for Source, and it's a direction that we believe offers the greatest opportunity going forward," Source Interlink chairman Michael Duckworth said in a conference call.
Source Interlink currently serves about 110,000 retail store locations throughout North America. Its customers include Barnes & Noble, Borders Group, Kroger, Best Buy, Wal-Mart and other large chains. Enthusiast Media Action Sports group publisher Allen Crolius, whose titles include Powder and Snowboarder, told SAM that he expects the acquisition to bolster the magazines' newsstand visibility and sales.
The deal is expected to close in midsummer, pending regulatory and customary approvals. The Enthusiast Media group is expected to operate as a division of Source Interlink and remain headed by Steve Parr, its current president.