He has been a mover and shaker in the big bad world of global media. Yesterday, however, Paul Kagan, who founded and grew Kagan World Media into the powerhouse that it is in research, data and information dealing with the traditional and new media worlds, announced that he was selling it and its related companies, to US-based Primedia in a stock deal.
Paul Kagan and his global organization are one of a kind in the media and communications sectors, says Tom Rogers, Primedias chairman and CEO. No source of information is more quoted about subjects ranging from radio to TV broadcasting to cable TV to broadband technology to sports and motion picture finance, streaming media and wireless communications. Primedia will clearly benefit from the enormous expertise and talent of the Kagan team, who will provide a unique strategic planning resource for Primedias own growth and development.
As someone who has spent a lifetime valuing media properties and selecting high-potential media investments, I feel very confident in placing our assets in the hands of Primedia, said Paul Kagan. The fact that we sold for stock rather than cash reflects my support for Primedias leadership and the positive effect that will have on the long-term potential of Primedia shares.
Properties acquired include Kagan Euromedia magazine, based in London and Asia Cable & Satellite World magazine, based in Hong Kong. Kagan properties include 38 trendwatching newsletters, 95 data-centric forecasting reports and 20 high-level executive conferences. Other Kagan assets include www.kagan.com, a global media news and data website with Kagan-on-Demand, a pay-per-view service using highspeed search software to archive over 42,000 pages of analysis and more than 6,000 data documents. The acquisition also includes Kagan Consulting, which provides strategic advisory and valuation services.
Paul will continue to oversee a broad range of Kagan operations, contribute to publications and moderate sessions at industry conventions and Kagan conferences,said Rogers. A major component of the agreement is that Paul will become vice chairman of Primedia Ventures, our venture capital investment arm, continued Rogers. Pauls enormous wealth of contacts and understanding of media technology and finance will provide substantial additional clout to our fund.
Both companies publish media magazines, newsletters and reports and have on-line businesses as well as exhibitions and conferences,Rogers said. Primedia has a broad number of B2B media and entertainment properties and a growing online presence through its B2B portal, IndustryClick, that the Kagan content will expand. The traditional media properties in our Primedia B2B Group includes such publications as Cable World, Telephony, Broadcast Engineering, Wireless Review and SIMBA (the leading newsletter and conference business covering the electronic information industries), and such online offerings as MediaCentral.com and TelecomClick.com.
The nature of the Kagan newsletters and databases, and the analytic approach they take is perfect for offering useful information for decision- makers online, Rogers continued. Our B2B interactive efforts are aimed at providing a framework for decision-makers and the content Kagan provides is perfectly suited for this approach. This is the type of acquisition that the new Primedia will look to make in that it adds a premier brand with talented individuals, new and traditional media applicability and opportunities for revenue growth.
The broadband cable and satellite industries have become global industries and having the European and Asian counterparts of our U.S.-based Cable World provides excellent international expansion opportunities for Primedia, continued Rogers.
Primedia will retain Kagan offices in Carmel, California; Denver, London and Hong Kong. Although numerous operating synergies will be generated by the acquisition, there are no plans for staff cuts among Kagans 140 employees.
Primedia, with 1999 sales from continuing businesses of $1.7 billion, is a targeted media company with print, video and Internet businesses focused on consumer and business-to-business audiences. The Company publishes more than 220 magazines, and owns and operates approximately than 300 Web sites and other Internet properties
