Few days before the final bids were due for BusinessWeek, leading financial information provider Bloomberg made a surprise entry into the auction. The deadline for final bids is Sept. 15.
Bloomberg had reportedly been approached to acquire BusinessWeek earlier, even before the start of the official auction process began 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 Co.s (MHP) 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 2009. The company has hired investment bank Evercore Partners to manage the sale.
McGraw-Hill has been able to attract potential bidders for the magazine. These 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.
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