After months of courting offers, Variety has finally settled on a buyer. Penske Media, backed by private equity firm Third Point, will acquire the trade publication for approximately $25 million.
Jay Penske told the Los Angeles Times that Nikki Finke will not be involved in running Variety, and that the publication will be operated separately from Deadline.com, though staffers may contribute to both. TheWrap hears from insiders that Finke is “having a major tantrum” because Penske will not give her a role in running Variety.
Variety‘s remaining 120 staffers are undoubtedly concerned about more layoffs, but the Chief Executive was vague about his plans when speaking to the LAT:
“We wouldn’t be buying this business if we didn’t have a plan to correct the recent deterioration of both revenues and profit,” Penske said. “We are not buying Variety to gut the newsroom. We are buying the business to build it. Are there going to be changes? Yes. Do we want to reduce our dependency on print revenues? Yes. How quickly that can happen, we’ll know more in the coming months.”
Penske also said that no decision had been made concerning the fate of the print versions of the trade. Variety publishes both a weekly edition and a daily edition on the weekdays.