Primedia also said its pre-tax earnings for 2005 would decline by as much as a double-digit percentage versus 2004; the company earlier estimated earnings would be flat to slightly down in the low single-digit percentage range. Primedia’s shares tumbled 18% to $2.50 in after-hours trading on Monday. On Tuesday, trading of the company’s shares was halted after an opening drop of 28%.
Primedia, which recently completed the sale of its b-to-b portfolio to Wasserstein & Partners for $385 million, has also shed its consumer properties, such as New York Magazine. It sold the About.com Web site to the New York Times Co. for $410 million earlier this year after purchasing it in 2000 in a stock deal valued at about $690 million.