Bloomberg reports BusinessWeek, the McGraw-Hill Cos. magazine that lost 30 percent of its advertising revenue in the second quarter, is up for sale, according to a person close to the situation.
McGraw-Hill hired Evercore Partners Inc., the boutique investment bank founded by Roger Altman, to sell BusinessWeek, sources say.
The recession and competition from the Internet have cut into ad sales at BusinessWeek and competitors. Condé Nast said in April that it was closing its two-year-old Portfolio business magazine after it failed to meet revenue forecasts.
“Magazines are vulnerable to the same decline in advertising revenue that has been hitting the newspaper industry,” said Tom Corbett, a Morningstar Inc. analyst in Chicago. “Because of that, the environment for sales of magazine properties is going to be pretty challenged.”
BusinessWeek was founded in 1929 and has almost 190 editorial staff, according to its Web site. It has about 4.8 million readers weekly in 140 countries. The weekly magazine’s 30 percent decline in second-quarter ad sales, to $43.9 million, compared with a 22 percent drop industrywide, according to Publishers Information Bureau data.
Total U.S. advertising spending fell 12 percent in the first quarter, led by tumbling demand in newspapers and magazines, after automakers and car dealerships slashed marketing budgets, Nielsen Co. said in June.
The magazine, run by Editor-in-Chief Stephen Adler, was overhauled in 2007 and added stories on new products and personal finance in an effort to attract more readers and advertisers.