Future Publishing Monopoly Complete – Highbury Acquired in £96 Million Swoop – Leaked Ingham Email Inside
Bath giant swallows remaining player – where now for UK magazines?
It has come to light that Future Publishing is almost certain to acquire rival magazine house Highbury in a deal believed to be worth over £96 million.
The news follows reports last week in which Highbury confirmed what had long been suspected – it had been approached by Future and was mulling over a then-undisclosed deal.
MCV reports that the proposed deal would see 10 Future shares offered for every 83.25 Highbury shares, at a share capital of £31.6 million, totalling £96.5 million.
Speaking to the UK trade mag, Future chief executive Greg Ingham said, “Highbury is a business that we know well and have followed for some time. We consider that it represents an opportunity to acquire a significant asset at a fair price. Whilst the business has faced some challenges in recent times, we are confident that we can integrate the titles and teams, and improve the financial performance and enhance shareholder value. Our respective businesses are complementary so there is a genuine opportunity to generate important synergies for the combined group”.
As you may be aware, this follows Future’s acquisition of Computec’s games portfolio and the recent assimilation of Dennis Publishing’s remaining gaming magazines.
If the deal goes through, which SPOnG believes is as near a certainty as possible, there will only be a single non-Future magazine on the shelves, namely EMap’s Nintendo Official Magazine.
Meanwhile, Ingham explains the deal to Future staff in the following email, sent this morning and leaked to SPOnG:
Morning everyone
Not for circulation other than to Future staff, please.
Good news! We have just announced an agreed all-share offer for Highbury House, a UK listed magazine publisher, valuing each Highbury share at 10p per share. This means that their shares are valued at £31.6m which, together with their debt of £64.9m, values the deal at around £96.5m.
The bid has the support of their Board of Highbury. It will require our shareholder approval and acceptance by their shareholders, which we estimate may take until April.
Highbury is a consumer, contract, B2B and local magazines company. Last week it announced the sale of its B2B business. It is largely a UK business, with smaller operations in the US, South Africa and Australia. Our primary interest is in the UK & US consumer and contract publishing activities. Highbury publishes around 68 consumer magazines in the UK and six in the US. We know these titles well and in the past have sought to buy several of them when under previous ownership.
The deal would take us to third-largest consumer publisher in the UK, and second-largest special-interest publisher in the UK.
Highbury's magazines fall into two broad camps: those in familiar territories (such as cars, games, computing, bikes, film, technology) and those in areas new for us (such as homes, men's lifestyle, puzzles, gardening, models and some contract titles). So we see it as an attractive blend of strengthening several of our core areas whilst moving into new areas - which has been our strategy for many years.
A Q&A about this will be available in due course.
The plan is to integrate the two UK businesses of Future and Highbury under Robert Price's team. In the US, the Highbury business would report into Jonathan Simpson-Bint.
We will be holding Forums in the UK this week - London on Tuesday, Bath on Wednesday (details to follow).
Assuming we gain approval, this will be extremely good news for Future - it'll be a great step forward.
Onwards...
Greg
We’ll bring you updates on exactly what Future discusses as and when we get them.
The news follows reports last week in which Highbury confirmed what had long been suspected – it had been approached by Future and was mulling over a then-undisclosed deal.
MCV reports that the proposed deal would see 10 Future shares offered for every 83.25 Highbury shares, at a share capital of £31.6 million, totalling £96.5 million.
Speaking to the UK trade mag, Future chief executive Greg Ingham said, “Highbury is a business that we know well and have followed for some time. We consider that it represents an opportunity to acquire a significant asset at a fair price. Whilst the business has faced some challenges in recent times, we are confident that we can integrate the titles and teams, and improve the financial performance and enhance shareholder value. Our respective businesses are complementary so there is a genuine opportunity to generate important synergies for the combined group”.
As you may be aware, this follows Future’s acquisition of Computec’s games portfolio and the recent assimilation of Dennis Publishing’s remaining gaming magazines.
If the deal goes through, which SPOnG believes is as near a certainty as possible, there will only be a single non-Future magazine on the shelves, namely EMap’s Nintendo Official Magazine.
Meanwhile, Ingham explains the deal to Future staff in the following email, sent this morning and leaked to SPOnG:
Morning everyone
Not for circulation other than to Future staff, please.
Good news! We have just announced an agreed all-share offer for Highbury House, a UK listed magazine publisher, valuing each Highbury share at 10p per share. This means that their shares are valued at £31.6m which, together with their debt of £64.9m, values the deal at around £96.5m.
The bid has the support of their Board of Highbury. It will require our shareholder approval and acceptance by their shareholders, which we estimate may take until April.
Highbury is a consumer, contract, B2B and local magazines company. Last week it announced the sale of its B2B business. It is largely a UK business, with smaller operations in the US, South Africa and Australia. Our primary interest is in the UK & US consumer and contract publishing activities. Highbury publishes around 68 consumer magazines in the UK and six in the US. We know these titles well and in the past have sought to buy several of them when under previous ownership.
The deal would take us to third-largest consumer publisher in the UK, and second-largest special-interest publisher in the UK.
Highbury's magazines fall into two broad camps: those in familiar territories (such as cars, games, computing, bikes, film, technology) and those in areas new for us (such as homes, men's lifestyle, puzzles, gardening, models and some contract titles). So we see it as an attractive blend of strengthening several of our core areas whilst moving into new areas - which has been our strategy for many years.
A Q&A about this will be available in due course.
The plan is to integrate the two UK businesses of Future and Highbury under Robert Price's team. In the US, the Highbury business would report into Jonathan Simpson-Bint.
We will be holding Forums in the UK this week - London on Tuesday, Bath on Wednesday (details to follow).
Assuming we gain approval, this will be extremely good news for Future - it'll be a great step forward.
Onwards...
Greg
We’ll bring you updates on exactly what Future discusses as and when we get them.
Companies:
Future Publishing
Read More Like This
Comments
NiktheGreek 14 Feb 2005 15:16
1/14
Goddammit, I liked GamesTM. They're likely going to kill it off and just say "Buy Edge!" instead. Stupid Electronic Ar- err, I mean Future.
Goodbye competition. But with ABC figures declining, was it worth competing? I really wanted to work on a games magazine...
Goodbye competition. But with ABC figures declining, was it worth competing? I really wanted to work on a games magazine...
ohms 14 Feb 2005 16:02
2/14
games™ is good, but it's kinda like EDGE lite, and they gave burnout 3 a perfect 10 too, if they wanna be like EDGE they shouldn't give out 10s so easily.
these days tho, there's very little you get in a games mag that you can't get online, and first too. some of these mags will have to go I reckon.
more comments below our sponsor's message
SPInGSPOnG 14 Feb 2005 16:27
3/14
Future wants to be Microsoft.
It used to be run ethically, but then it went public, and the controlling hand of the good Chris(tian) Anderson was replaced by the sick avarice of good Socialist gone awry Greg Ingham... and since them it's been free market avarice over principles, Driv3l bungs over journalistic integrity, and buy/destroy the competition over publishing quality.
Let's face it, they publish Official Xbox Mag, and some pretty dodgy how to make XP not run-and-crash-like-a-dog magazines. Plus they sold FUtile Gamer to MSN. They want to BE the Microsoft of paper publishing. I'll be leaving their expensive, late and bought and paid for by the publishers rags on the shelves.
It used to be run ethically, but then it went public, and the controlling hand of the good Chris(tian) Anderson was replaced by the sick avarice of good Socialist gone awry Greg Ingham... and since them it's been free market avarice over principles, Driv3l bungs over journalistic integrity, and buy/destroy the competition over publishing quality.
Let's face it, they publish Official Xbox Mag, and some pretty dodgy how to make XP not run-and-crash-like-a-dog magazines. Plus they sold FUtile Gamer to MSN. They want to BE the Microsoft of paper publishing. I'll be leaving their expensive, late and bought and paid for by the publishers rags on the shelves.
Joji 14 Feb 2005 16:49
4/14
I to am a fan of Games TM. It's a quality mag that came from nowhere and remembers that games are about having fun be they from past, present or future. I buy Edge and it's a good mag but it has lost it's way a little. I really buy it for the articles and then the reviews. I bought GAmes a few times and it's a lot of fun. Large retro section in each issue which I think is great to give gamers an education in sweet stuff they missed while the were still in daddy's happy sack. Top mag indeed.
I recall over the last few month Edge changed it design layout AGAIN, and now it seems similar to Games TM. And now this happens and while I like a lot of future's mags you have to ask yourself which mags will stay and which will go. I can see some of the single format mags getting the chop first as some either close or merge with others. Don't have a problem with that, too many single format mags taking up shelf space. It's gems like Games TM that might be compromised in favour of Edge and Gamesmaster etc.
Is buying the competition always the best way to real glory or not? I don't think it is.
Truth is mag sales are slipping because we can all go online for up to the minute news, reviews etc. And that's just what many of us will also be doing when big events like E3 come along. When you add the extra abilities of the net like sending text message news updates to your mobile, while E3/TGS/GDC etc is running, and you can see what traditional mags are up against.
Time will tell if the fruit of this union (if you can call it that) will pay off as it always does. Saying all that though just how do you go up against daily updated websites? It's questionable battle of print monthly vs online daily and when you look at it from that angle, perhaps something positive may come of it all.
I recall over the last few month Edge changed it design layout AGAIN, and now it seems similar to Games TM. And now this happens and while I like a lot of future's mags you have to ask yourself which mags will stay and which will go. I can see some of the single format mags getting the chop first as some either close or merge with others. Don't have a problem with that, too many single format mags taking up shelf space. It's gems like Games TM that might be compromised in favour of Edge and Gamesmaster etc.
Is buying the competition always the best way to real glory or not? I don't think it is.
Truth is mag sales are slipping because we can all go online for up to the minute news, reviews etc. And that's just what many of us will also be doing when big events like E3 come along. When you add the extra abilities of the net like sending text message news updates to your mobile, while E3/TGS/GDC etc is running, and you can see what traditional mags are up against.
Time will tell if the fruit of this union (if you can call it that) will pay off as it always does. Saying all that though just how do you go up against daily updated websites? It's questionable battle of print monthly vs online daily and when you look at it from that angle, perhaps something positive may come of it all.
Ditto 14 Feb 2005 17:25
5/14
Future dominates, then.
Since I live really close to Future, I should probably feel happy for it, but Future really does produce some of the worst overpriced magazines ever.
It's always a pity when a monopoly develops. Only the dire Nintendo Official Magazine UK (RIP Official Nintendo Magazine 1998) remains.
What's the current position in computer magazines? VNU's Personal Computer World continues to get my vote as best computer magazine, as well as being the longest running. Future's original PC Plus become unbearable in 2002 when they introduced their new design and was always overpriced. Most of the other magazines are now owned by Future too, I think.
I REALLY hope that Future don't aquire VNU.
Since I live really close to Future, I should probably feel happy for it, but Future really does produce some of the worst overpriced magazines ever.
It's always a pity when a monopoly develops. Only the dire Nintendo Official Magazine UK (RIP Official Nintendo Magazine 1998) remains.
What's the current position in computer magazines? VNU's Personal Computer World continues to get my vote as best computer magazine, as well as being the longest running. Future's original PC Plus become unbearable in 2002 when they introduced their new design and was always overpriced. Most of the other magazines are now owned by Future too, I think.
I REALLY hope that Future don't aquire VNU.
schnide 15 Feb 2005 10:07
6/14
Hopefully at least now if the games magazine market does collapse because of website competition, it can only take down the whole of Future and in one fell swoop.
"Hello Mr Consumer, want to read about games? Well give us seven pound of your money and we'll get some five year olds to knock something up for you!"
"Hello Mr Consumer, want to read about games? Well give us seven pound of your money and we'll get some five year olds to knock something up for you!"
SPInGSPOnG 15 Feb 2005 11:16
7/14
schnide wrote:
"Hello Mr Consumer, want to read about games? Well give us seven pound of your money and we'll get some five year olds to knock something up for you!"
Should that not be, "We'll get some five years olds to write what Atarigrames tell us to, or steal some old news from a few websites".
Jayenkai 15 Feb 2005 13:42
8/14
Being a regular subscriber to both Edge and Gamestm I must agree that it's only ever the articles that I read.
I very (VERY) rarely bother to read the reviews in mags anymore. Heck, 99% of the screenshots look the same to begin with!
Edge has all the developers stuff, whilst Games had the retro stuff, (but Retro Gamer seems to have filled that slot rather nicely!)
Is Games really that necessary anymore?
I very (VERY) rarely bother to read the reviews in mags anymore. Heck, 99% of the screenshots look the same to begin with!
Edge has all the developers stuff, whilst Games had the retro stuff, (but Retro Gamer seems to have filled that slot rather nicely!)
Is Games really that necessary anymore?
DoctorDee 15 Feb 2005 14:16
9/14
Jayenkai wrote:
but Retro Gamer seems to have filled that slot rather nicely!
What's the betting Future makes a move to take over Retro Gamer some time soon?
NiktheGreek 15 Feb 2005 14:30
10/14
Jayenkai wrote:
Is Games really that necessary anymore?
Maybe not, but isn't having the choice nice?
Hmm, what to do instead... I think I'll press ahead with project NGO.
Rustman 15 Feb 2005 18:48
11/14
I bought Edge when it very first came out. I even have the box given to subsribers to keep their first years collection in. Unfortunately it did lose its way and created a niche in the market leaning towards developers and those trying to get into the industry. It forgot fairly early on in its life that games are meant to be fun and followed through with a style of writing that made me feel that gamers were the dumb part of the equation that were a bit of an embarrassment to them.
GamesTM brought intelligent, yet fun gaming back to the newsstands for me and considering I've subscribed since I bought issue one, I would be extremely upset if Edge were to supplant its place on the racks.
Does anybody know the circulation numbers? How does Edge fare against GamesTM?
I guess at the very least we can expect the subscription price to go up. £2 per issue can't be touched by Edge. 23% off the cover price isn't 50% and as Edge is more expensive to begin with it's still close to double a GamesTM subscription per quarter which is only £6. Would I be prepared for a price hike? Possibly, but I'm not sure I would tolerate a measly less than a quarter off cover price.
GamesTM brought intelligent, yet fun gaming back to the newsstands for me and considering I've subscribed since I bought issue one, I would be extremely upset if Edge were to supplant its place on the racks.
Does anybody know the circulation numbers? How does Edge fare against GamesTM?
I guess at the very least we can expect the subscription price to go up. £2 per issue can't be touched by Edge. 23% off the cover price isn't 50% and as Edge is more expensive to begin with it's still close to double a GamesTM subscription per quarter which is only £6. Would I be prepared for a price hike? Possibly, but I'm not sure I would tolerate a measly less than a quarter off cover price.
fluffstardx 15 Feb 2005 21:59
12/14
I still get EDGE. I have ridiculous amounts of them, to the point where i'm being asked to eBay them by the wife.
This... can't be good. Then again, we all get our opinions off the net now, so bleh.
This... can't be good. Then again, we all get our opinions off the net now, so bleh.
professorspatula 16 Feb 2005 18:02
13/14
MrCoggy wrote:
Does anybody know the circulation numbers? How does Edge fare against GamesTM?
You can check for yourselves at the ABC website:
www.abc.org.uk . Unfortunately the circulation figures for both are out of date, especially for Games TM.
I've bought a few issues of Games TM, mainly for the retro angle. However, I find it's a jack of all trades, master of none, and doesn't go into enough depth to satisfy, especially when I can find much more info online for free.
I was going through my old magazine collection and saw a couple of issues of Games X - a weekly multi-format magazine. I think Games TM would have been better off heading in that direction to at least give it a unique angle, especially as now Retro Gamer has the retro aspect well covered.
I don't even want to imagine what will happen to the mag now Future has it.
SPInGSPOnG 16 Feb 2005 18:50
14/14
fluffstardx wrote:
This... can't be good. Then again, we all get our opinions off the net now, so bleh.
All the best people never got their opinions from Edge (Vapourware Format) anyway.