WIRED SOLD!!! More disgruntlement in the mill?
Wired Sold
Wired News Report
7:06am 8.May.98.PDT
Wired Ventures Inc., parent company of Wired
News, issued the following press release Friday
morning:
SAN FRANCISCO -- The Board of Directors of
Wired Ventures Inc. today approved the sale of its
flagship print publication, Wired magazine, to
Advance Magazine Publishers Inc., owners of
some of America's top lifestyle magazines,
including Vogue, GQ, and Vanity Fair. Terms of
the deal were not disclosed.
The sale of the magazine enables Wired Ventures
Inc. to pay off short-term debt and fund its online
businesses, operated by its wholly owned
subsidiary, Wired Digital. Wired Digital's online
publications, HotWired and Wired News, and its
search engine, HotBot, attract more than 8 million
unique users each month, ranking them among
the 16 highest-trafficked sites on the Internet,
according to RelevantKnowledge April 1998
figures. As part of today's agreement, Wired
Digital will retain the perpetual exclusive online
rights to the Wired brand name. Wired Digital
delivered US$3.4 million in revenue in the first
quarter of 1998, a 113 percent jump from the same
quarter last year. It is expected to turn a profit by
Q4 1998.
"Our online business has accounted for the
greatest percentage of the company's overall
revenue growth over the past two years. This
transaction solidifies our financial position,
provides ample funding for our online properties,
and positions the company for many possible
opportunities going forward," said co-founder Louis
Rossetto.
Launched in January 1993, Wired magazine won
immediate national attention and critical acclaim
for its groundbreaking coverage of the digital
revolution, a phrase it coined. With an innovative
graphic presentation and authoritative yet
irreverent voice, the magazine features coverage of
the economic, political, and social impact of the
emerging digital generation. Wired has twice won
the prestigious National Magazine Award for
General Excellence. The magazine has posted five
consecutive quarters of profitability, with
circulation expected to grow from 400,000 to
425,000 this July.
Advance Magazine Publishers Inc. has been an
investor in Wired Ventures since January 1994.
The company is expected to continue the course
set by founders Rossetto and Jane Metcalfe and
continue to operate the business from San
Francisco.
"We have long admired Wired for its innovative
approach to publishing and its strong editorial
voice. We look forward to working with existing
management to grow the magazine further," said
Advance Chairman Si Newhouse.
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