Fortune magazine, a founding brand of the Time Inc. empire that started publishing right after the stock market crash of 1929 and went on to chronicle the rise and fall of the United States' biggest companies, has been sold to a Thai businessman for $150 million.
Chatchaval Jiaravanon, whose family controls Charoen Pokphand, one of Thailand's largest companies, will acquire Fortune as a personal investment, according to a statement from the magazine's current owner, Meredith Corp. He intends to increase investment in Fortune's digital capabilities, geographic expansion and editorial talent, the statement said. Fortune's franchises include the Fortune 500, the 100 Best Companies to Work For and other similar titles.
Jiaravanon is the second unexpected buyer for a Time Inc. title in recent months. In September, Meredith said it would sell Time magazine to Marc Benioff, the billionaire chief executive of the software company Salesforce, for about $190 million.
"This was a great outcome," Alan Murray, who had been Time Inc.'s chief content officer and will become Fortune's chief executive, said in an interview, adding that Jiaravanon "has ambitious goals for the magazine."
In the statement announcing the deal, Jiaravanon promised to invest in technology and journalism at Fortune.
The deal, subject to regulatory approval, is expected to close by the end of the year. Meredith said Friday it will use the proceeds to pay down debt.
Like all magazines, Fortune's print business has declined -- ad pages for 2018 are down more than 25 percent -- which prompted the title to focus on other potential areas of growth, specifically digital advertising and conferences. Those businesses now make up about 62 percent of the magazine's nearly $100 million in annual revenue, and it makes about $10 million in profit when not taking into account interest, taxes, depreciation and amortization.
The purchase price and Jiaravanon's willingness to invest in the magazine were key factors in his winning bid, Murray said, although the specific amount of additional investment was not discussed. Fortune is likely to add to its staff and will consider putting a paywall on its website.
Meredith moved quickly after acquiring Time Inc. last year to sell the magazines that did not fit into its existing stable: glossies centered around home and lifestyle and geared toward female readers. The company announced in March that it was seeking a buyer for Fortune, as well as for Time, Money and Sports Illustrated. Although Meredith's decision to sell those titles was widely expected, it nonetheless signaled a further decline of the magazine industry.
Auctioning off the magazines was more complicated than Meredith executives had expected. As a case in point: Benioff was close to buying Fortune before switching his preference to Time when he saw that it was a bigger business. At that point, Meredith had to seek new bidders for Fortune.
Murray, who helped lead the process along with and Meredith's banking adviser, Citigroup, said in September, "It was a learning process for me, and these things just take a lot longer than you think they would."
Jiaravanon, 56, who will not play any role in managing the magazine, emerged as a suitor only within the past three weeks, Murray said. Meredith had talked to about a dozen serious buyers for the magazine this year.
The deal was reached Friday evening in Hong Kong, where Jiaravanon celebrated his acquisition at dinner with Murray.
Fortune, the second title to be hatched by Henry Luce, Time Inc.'s founder, has won numerous awards over its 88 years. It became known for its in-depth features, which often recast a company's rise or fall as a lively case study.
Information for this article was contributed by staff members of The Associated Press.
Business on 11/10/2018