Disney Sells L.A. Magazine to Media Firm

Walt Disney Co. sold Los Angeles magazine on Monday to Emmis Communications, an Indianapolis media company that owns local radio station KPWR-FM and publishes city and regional magazines nationwide.

No price was disclosed, but sources said Emmis is paying more than $25 million for the publication, which has a monthly circulation of more than 190,000.

In a conference call with analysts on Monday, Disney Chief Financial Officer Thomas Staggs said the magazine “wasn’t necessarily a strategic asset.” Disney acquired Los Angeles magazine in 1996 as part of its $19-billion acquisition of Capital Cities/ABC. Disney kept the magazine when it sold its Fairchild Publications magazine unit last year for $650 million to Conde Nast Publications Inc.

At the time, company officials said they believed the magazine fit into the company’s core entertainment business. Disney didn’t comment on the sale, and Emmis Chief Executive Jeff Smulyan said he didn’t know why the company changed its mind.

But Disney has been targeting assets to divest that are unrelated or marginally related to entertainment as part of a cost-cutting effort. Last year, Disney held talks to sell its two sports franchises, the Mighty Ducks of Anaheim hockey club and the Anaheim Angels baseball team, but no deal resulted.

Smulyan said the acquisition gives Emmis a good opportunity to expand further into Los Angeles. In addition to owning KPWR, the company recently made a bid for station KKBT-FM (known as “The Beat”), but no sale has resulted.

Smulyan said he doesn’t expect wholesale changes at the magazine. “Everything we know about the magazine is that it is very, very good and has good people. I don’t see dramatic changes in staffing or management,” Smulyan said.

In addition to its magazines, Emmis owns 13 FM and two AM radio stations, as well as two radio networks and seven TV stations.