The new ownership team at Financial World installed Seth Hoyt as president/publisher, replacing President and Editor in Chief Douglas McIntyre, who resigned under fire last week--one month after the takeover.
"It was certainly a surprise to me," said Mr. McIntyre, reached Monday. "In essence they [new owners] had given me a contract which they ended up buying out. We definitely had a disagreement about the direction of the company."
He said he has formed a new company called McIntyre Media Properties, New York, which will target small to midsize weekly newspapers.
"We're looking for properties in places like Bad Ax, Mich., where there is not a lot of competition," he said. So far, the venture capital group is funded an equity pool of $1.5 million, he said.
Mr. McIntyre had been at Financial World since 1982.
Financial World and its sister publication Corporate Finance were taken over last month by brothers Barry and Steve Rupp. The Rupps held an equity stake in Entrepreneur from 1986 to 1989.
Mr. Hoyt is a past VP-publisher of Hearst Corp.'s Cosmopolitan who was most recently publisher of custom media at Forbes Inc.'s American Heritage. Earlier he worked at Money as sales manager and on the promotion staff at Sports Illustrated.
Financial World, founded in 1902, is one of the oldest business magazines in the country but one that has had a hard time defining its position behind the big three of Fortune, Forbes and Business Week in recent years. Through November, Publishers Information Bureau reports that the magazine's ad pages are down 9.6% to 906.7 compared to a year ago while its three larger rivals all reported ad page gains in the 11-month period. Its paid circulation was essentially flat for the six months ended June 30, at 503,282, according to the Audit Bureau of Circulations.
Financial World lost an estimated $50 million since its takeover by a coalition that included Mr. McIntyre with cash backing from Carl H. Lindner, Jr., head of Cincinnati-based American Financial Corp., which has a history of successfully investing in turnaround situations. But more than a year ago, with no end to the red ink in sight, Mr. Lindner decided to retreat from the magazine and talks were held with a variety of suitors that included the London-based Economist Group.
In a prepared statement, Barry Rupp said the installation of Mr. Hoyt was "the first change in many that we plan to make in order to build on the 94-year-history of this venerable title."
Mr. Hoyt, who took up his new post last Thursday, did not return several calls on Monday. Among the changes so far will be a scale-back in frequency from every-other-week to 18 times a year.
Copyright December 1995 Crain Communications Inc.