Maxim Magazine Fetches Bids of About US$20 Million
Maxim magazine, a publication for men, fetched around US$20 million from bids. In March, Maxim went up for sale. However, the amount stated was less than a 10th of the cost its investors paid from six years ago. The information came from people with knowledge of the magazine's finances.
Cerberus Capital Management LP regulated Alpha Media Group Inc. which was Maxim's publisher. Cerberus anticipated losing US$3 million to US$5 million during this year.
The owners of the men's title saw decrease in their annual earnings. Maxim was once a leading magazine. Due to the industry-wide slump in marketing dollars, the publication's revenues continued to decline. Furthermore, digital venues took the glory of prints because the rates were more inexpensive. Advertisers and readers also shifted their interest to the largely free online industry.
In 2012, Mazim's yearly ad sales plunged 28% to US$112 million. This was in comparison to a 2.9% slide among all the magazines in the world, as stated by Publisher's Information Bureau.
"Maxim does not comment on rumor or speculation, but we can confirm that Maxim is in discussions with a strong group of highly-engaged, potential buyers," Publisher Benjamin Madden said in a statement sent through email.