Bonnier Scoops Up Motorcycle Mags in Deal With Source InterLink
Bonnier Corp. and Source Interlink Media inked three separate deals on Monday that send nine motorcycle titles to Bonnier and all but one TransWorld title, as well as Sound + Vision, to Source InterLink. Both companies pursued the deals in order to deepen their presence in the verticals the magazines cover, according to a spokesperson for Bonnier.
Neither company released financial terms of the deals, but in an internal memo to staff, Bonnier CEO Dave Freygang assured employees that after weeks of deal-making the company is ready to move forward with its current lineup of titles.
"The transactions today are the last in a series of moves we have implemented to transform our company to one that will achieve revenue growth and sustained profitability," Mr. Freygang wrote in the memo. "Please be certain of this: We have our operating groups and brands in place, and we have the right people to allow us to achieve our goals."
A spokesperson for Bonnier said no layoffs will result from today's deals. He characterized it as a trade, in which each company will receive the other's staff.
Last week, Bonnier sold Parenting and Baby Talk to Meredith Corp., which will fold the magazines into its own parenting titles. At least 60 Bonnier employees were laid off as a result of that deal. Last month, Bonnier sold Ski and Skiing magazines to Active Interest Media.
After Monday's deal, Bonnier, which already publishes Cycle World magazine, will receive Motorcyclist, the second largest title in this category, as well as Sport Rider, Dirt Rider, Motorcycle Cruiser, Hot Bike, Baggers, Super Streetbike, Street Chopper and ATV Rider. Bonnier is now the largest publisher in the motorcycle market, a Bonnier spokesperson said.
"Our new portfolio of motorcycle brands positions us to serve every segment of the motorcycle community and reach the largest aggregate of motorcycle enthusiast consumers possible," Bonnier Exec VP Eric Zinczenko said in a statement. "The new Bonnier Motorcycle Group's audience demographics complement those of our existing men's titles."
Source Interlink is buying TransWorld SNOWboarding, TransWorld Motocross, TransWorld SKATEboarding, TransWorld SURF, TransWorld RIDEbmx and TransWorld Business. The only TransWorld title Bonnier will keep is Wakeboarding magazine, which it had owned prior to buying TransWorld from Time Inc., in 2007. Bonnier lumped Wakeboarding under the TransWorld brand after the deal. It will still be called TransWorld Wakeboarding for now, according to a spokesperson.
In a separate deal, Source Interlink bought Sound + Vision, a magazine covering home theater, audio, video and multiple products for consumers.