View all newsletters
Sign up for our free email newsletters

Fighting for quality news media in the digital age.

  1. Archive content
October 12, 2007

Hearst move could close Emap mags, experts warn

By Rachael Gallagher

Natmags could become the largest magazine publisher in the UK if its parent company buys Emap’s consumer portfolio.

But industry sources have warned it could be at the cost of closure, sale or merger of some of its consumer titles.

According to reports, US media conglomerate Hearst has tabled a £700m bid for the Emap consumer division. The potential move would see its UK arm, Natmags, become the top player in the market, ahead of IPC, the UK division of Time Warner Inc.

A media buyer, who asked not to be named, told Press Gazette: ‘It would turn Natmags into a hugely powerful magazine company.

‘It will give them another dimension, and a much stronger foothold in the youth market. It could make life difficult for buying houses because you want the market to be competitive.”

But they warned the move may come at the cost of titles, with certain Emap publications operating in the same sectors as Natmags under threat.

The source said they believed Emap titles such as Arena, NW and Closer would be particularly at risk. This is because Natmags already has a firm foothold in the men’s lifestyle, women’s monthlies and gossip weeklies sectors with magazines such as Men’s Health and Esquire, Cosmopolitan and Company, and Reveal in the real-life/celebrity sector pioneered by Closer.

Content from our partners
MHP Group's 30 To Watch awards for young journalists open for entries
How PA Media is helping newspapers make the digital transition
Publishing on the open web is broken, how generative AI could help fix it

One city analyst said a Hearst buyout would be a classic defensive move, putting together a larger company and reducing costs across the board. ‘It’s consolidation in the face of not a lot of growth,’he said.

‘If you have a market with three players, there’s always one of them making trouble at one time,’the analyst said.

‘When you have two dominant powers, life becomes a little easier. Apart from the cost element, there’s a definite argument in there that having two large powers in the market would be preferable.”

According to Press Association some 45 parties have expressed interest in the Emap portfolio, with at least one bid for all three parts – consumer, B2B and radio.

Bidders for Emap’s B2B, which has a likely price tag of £1.3bn, include Incisive (Apax), United Business Media, Reed Elsevier, Cinden and Candover.

Guardian Media Group refused to confirm this week if it had made an offer for the B2B assets.

Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog

Select and enter your email address Weekly insight into the big strategic issues affecting the future of the news industry. Essential reading for media leaders every Thursday. Your morning brew of news about the world of news from Press Gazette and elsewhere in the media. Sent at around 10am UK time. Our weekly does of strategic insight about the future of news media aimed at US readers. A fortnightly update from the front-line of news and advertising. Aimed at marketers and those involved in the advertising industry.
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network