According to media reports, leading financial data, news and analytics provider Bloomberg is the frontrunner in the race to acquire BusinessWeek.
McGraw-Hill Companies (MHP) also considers Bloomberg as the best bidder for the struggling magazine as it views that both the companies are at the helm of the financial media industry.
Bloomberg had reportedly been approached to acquire BusinessWeek earlier, even before the start of the official auction process in July. However, the company did not consider the proposal on grounds of higher valuation.
Bloomberg’s renewed interest in the struggling magazine is part of its business strategy to sustain expansion beyond its core business. The company has a news service, publishes books and magazines, and circulates business information through TV, radio and the Internet.
Earlier in July, parent group McGraw-Hill said that it was seeking strategic options for BusinessWeek, which was severely battered by plunging advertising demand amid the global recession. Advertising pages in BusinessWeek’s global edition declined 34.3% in the second quarter of fiscal year 2009. The company has hired investment bank Evercore Partners to manage the sale.
Other potential bidders for the magazine include Bruce Wasserstein, the Chairman and CEO of investment banking firm Lazard Frères, media business manager ZelnickMedia Corp. and private equity firms OpenGate Capital, Platinum Equity and Warburg Pincus.
Recently joining the group of bidders is Mort Zuckerman, the real estate tycoon and the owner of the New York Daily News newspaper and US News & World Report.
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