Just had a lucheon with the president (who sent
me a letter by the way congratulating me on our record
this year) of the not-for-profit
hospital that I work at. This was the first (until this email) I had
heard of this "KKR". Seems they do the same thing in the
health care industry, monopolize basically the real money making
practices like cardiac services out of the hospitals (and they screen
taking only those with say private pay or insurance) , many of which
are public and not for profit institutions, that must care for EVERYONE
who comes through their doors. These not for profit hospitals loose mega
bucks with many of the services they must provide, and when these cherry
picker boutique type clinics go up taking away the very important dollars
from them, they quickly dwindle and struggle, making your county hospitals
terrible. Support your local public hospitals, they are a huge asset
to every community.
And thanks for the email enlightening me further on the KKR types
and their practices in the HOT ROD world.
Joe :)
FastmetalBDF@aol.com wrote:
> All:
>
> I received word this morning that Primedia, publishers of Drag Racing USA,
> have terminated publication of "Drag Racing U.S.A. Magazine". This is
> unfortunate, but not a surprise, as the circulation for this magazine had
> been below the "live or die" figure for profitability for some time.
>
> "DRUSA" was the new name given to the old "Bracket Racing USA" title. Dale
> Wilson was Editor of "BRUSA", and that title was combined into "DRUSA", to
> provide a wider scope for the magazine and cover all of drag racing. The
> new "DRUSA" title was edited by Steve Collison, who died suddenly last year.
> The ultimate fate of current DRUSA Editor/Publisher Randy Fish and Associate
> Editor Dale Wilson, both of whom are "good guys" and enthusiasts, is unknown
> at this time.
>
> For those who don't know, Primedia is owned by the corporate-raider/pirate
> firm, Kohlberg-Kravits-Roberts. "KKR", as they are known, was the major
> player in the RJR-Nabisco take-over. This rather unsavory chapter in
> century-end business history resulted in the movie "Barbarians At The Gate".
>
> Primedia now owns the majority of the magazine titles which cover the
> performance automotive marketplace. They (Primedia) began several years ago
> by buying Argus Publishing, whose flagship titles were Popular Hot Rodding
> and Super Chevy.
>
> Next, they bought out McMullen Publishing, followed by CSK Publishing, a
> NJ-based publisher.
>
> Earlier this year, Primedia bought EMAP USA, which was the purchaser of
> Petersen Publishing.
>
> Petersen was the company originally founded by Robert E. Petersen,
> originator of Hot Rod and Motor Trend. Wally Parks was an original partner
> with "Pete", but left to head the fledgling NHRA. In the mid-1990's Bob
> Petersen sold his company to a group of investors. This new group acquired
> Dobbs Publishing (Lakeland, FL), and took the new conglomerate company
> public about 3-4 years ago. It was that group who sold to EMAP, a
> London-based media company, about three years ago.
>
> OK, everybody still with me? Come on now, wake up! No naps!
>
> EMAP owns many, many titles plus broadcast media in the U.K. plus a large
> number of non-English language titles in various European countries
> including the former Soviet Union members. EMAP was eager to gain a strong
> entry into the U.S. market. Perhaps their eagerness was their downfall. At
> the time of the purchase it was widely assumed that EMAP paid far too much
> for their new acquisition, Petersen Publishing. The large debt associated
> with this purchase was regarded as a millstone that would soon submerge the
> hopes EMAP had for building an even larger publishing firm in the U.S.
> market.
>
> As we know, the US economy slowed, ad revenues tanked and EMAP quickly got
> into significant financial trouble over their highly-leveraged US purchase.
> A British public company, EMAP had severe shareholder problems related to
> this purchase and they were forced to declare a "write-down" of 550 million
> British pounds! The EMAP C.E.O., a gentleman named Kevin Hand, was "sacked"
> as the Brits say, for his role as the primary champion of the EMAP purchase
> of Petersen. After that, the EMAP USA holdings were placed on the market,
> for sale at a greatly reduced "fire sale" price.
>
> Primedia came along and made the buy-out for a fraction of what EMAP paid to
> the investor group who sold Petersen! Obviously, the investor group made
> out like the proverbial "bandits"!
>
> Now Primedia owns nearly all of the slick-paper magazines that cover the
> performance automotive market.
>
> Can you say: "M-O-N-O-P-O-L-Y?"
>
> The demise of the Drag Racing USA title is the third or fourth euthanization
> of magazines recently performed by Primedia, and it won't be the last as
> this financial corporation seeks to return profitability to their balance
> sheet. Bear in mind that these are "money men", with no interest or stake
> in the performance automotive aftermarket, magazine readers, enthusiasts,
> racers or the companies who produce and sell to this market. These are
> "bottom line" business people pulling the strings, and even the "car
> enthusiasts" still involved must jig to the dollar-sign fiddle, or seek
> their means elsewhere.
>
> Sorry if I've bored anyone with all this detail, but the "Who's on first in
> the automotive publishing world" scenario directly impacts this marketplace,
> industry and hobby that many of us have a personal, vested interested in.
>
> -Jim Hill
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