Supermarket Tabloid Will Be Acquired : National Enquirer to Sell for $412.5 Million
The National Enquirer, a brash supermarket tabloid that gained wealth and notoriety by prying--often uninvited--into the lives of celebrities, is being taken over by a publisher of romance magazines.
The Enquirer’s parent company, GP Group Inc., will be sold to Macfadden Holdings Inc., the New York publisher of True Story, True Confessions and Modern Romance, for $412.5 million cash, it was announced late Thursday.
The newspaper--published in Lantana, Fla., and often accused of sensationalistic, lurid journalism--emerged as a coveted acquisition after the death last October of Generoso Pope Jr., the GP Group’s owner.
Some of the biggest names in the media business, including British publisher Robert Maxwell, France’s Hachette SA and West German publisher Heinrich Bauer, were reportedly among the bidders at one time or another.
In a statement announcing the agreement, Macfadden said it had formed a partnership to make the bid with media investment fund Boston Ventures Limited Partnership III, which is financing the purchase.
Attractive Franchise
The privately held Macfadden will have responsibility for operating GP Group’s holdings, which include the National Enquirer and its sister publication, Weekly World News.
The National Enquirer has an average paid circulation of about 4.3 million per week while the circulation of Weekly World News is about 1 million.
In addition, the two publications offer considerable advertising power and an attractive franchise in the supermarket checkout lanes.
The Blackstone Group, a private New York investment bank, was retained last December to conduct the auction process. One of Blackstone’s partners, Peter G. Peterson, was one of three trustees for Pope’s estate.
Peterson could not be reached for comment, and the firm declined to comment on how many bidders actually participated.
Michael Boylan, Macfadden’s president, said that while there may be some changes in how the publications are marketed, the prospective new owners don’t plan to change their operations. GP Group’s headquarters will remain in Lantana, he said.
Macfadden was founded in 1975 when Callahan acquired several unprofitable romance publications for an investment of $800.
Today, Macfadden publishes a group of seven romance magazines with a combined monthly circulation of about 2 million, led by True Story at 1.3 million, Boylan said.
In addition, Macfadden publishes Teen Beat magazine with a circulation of 250,000 a month, and two special interest magazines, the Discount Merchandiser and Chief Executive.
