One of the first reporters to accurately gauge the level of interest in a purchase of Variety has a follow-up piece tonight. This time, paidContent senior writer Daniel Frankel focuses on the eventual final price tag.
According to Frankel’s sources, a recent New York Post article was not entirely on the money. In addition to the hidden costs revealed once the trade is fully detached from its parent company, there will also be the matter of post-deal expenditures:
“That $40 million is a pretty considerable amount of money, but the problem is you’re not done at $40 million,” said one knowledgeable individual, who spoke at length to us. “You’re buying a property that’s had a decade of deferred maintenance. Whoever underwrites this is going to have to do this with a plan of investing significantly post-purchase.”
Frankel goes on to evaluate the relative liquidity of alleged current suitors Penske Media Corp., TheWrap and Ron Burkle (pictured). Since billionaire Burkle is the only person who can “get this done without making any phone calls,” a source tells Frankel that Variety will be his if he wants it.
[Photo courtesy The Burkle Foundation]
Previously on FishbowlLA:
Report: TheWrap, Penske and Ron Burkle in Hunt for Variety
Report: Eleven Potential Bidders Circling Variety