Flagship Magazine Heads to the Bone Yard
October 27, 2009
I was in some far off country and remarked about the large number of ships anchored offshore. I asked the captain of the ship about these vessels, “Headed for the bone yard. Maybe scrap. Pence on the pound they are.” I thought about this bone yard example when I read “Business Week’s Fire Sale Nets McGraw Hill $5.9 Million, or $15,000 Per Staffer.” Properties change hands frequently. What struck me about this particular transaction is that the Economist seems to be sailing along quite nicely. The US business flagship—Business Week Magazine—is not doing so well. I thought about the $15,000 per staff member angle as well. I rejected it. Knowledge workers are a dime a dozen today, so finding replacements should not be much of a chore in New York or even Louisville for that matter. The point that struck me was this passage in the article about the rendering of Business Week:
Today the company told investors just how much it will net from the sale of the 80-year-old title: $9.3 million, or $5.9 million after taxes.
I wondered if buying out of service ships would provide a more lucrative return for the buyer. I will refrain from using such colorful and emotion charged language as “rusting hulk”, “coal fired”, or “sailing into the sunset.” Too painful even for me. Imagine what the magazine publishers are thinking about the value of their publications. Hopefully the full text of Business Week’s articles will be available somewhere. There used to be quite a bit of useful information in the publication, but I stopped reading it three or four years ago. Sad and somewhat unnerving even to an addled goose in rural Kentucky. Business Week. Pence on the pound.
Stephen Arnold, October 27, 2009
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