Bauer extends magazine sale process amid suggestions buyers drifting away

Monday, 18 May 2020

Some Bauer magazines will resume production.

Bauer has extended the sale process of its magazine titles in New Zealand, citing the “volume of interested parties”.

Bauer revealed earlier this year it was closing its New Zealand business and selling off its magazines.

Among those on the block were NZ Woman's Weekly, NEXT, North & South, The Listener, Metro, Taste, FQ, Your Home & Garden, Simply You, Home, Good Health and Wellbeing and the website noted.co.nz.

In a statement, a spokesperson said the process had been extended to the end of May. Non-binding offers can be submitted up to 5pm on Friday, May 29.

* Bauer magazines such as Metro and NZ Listener offered up to media and investment firms

* Why did Bauer blow up the business so soon?

“Subscribers have been informed of this delay and we’re hopeful that the sale process will be completed and subscriptions resumed as soon as possible.”

In a letter to interested bidders, EY, which is handling the sale, said: 'We do understand the broad desire from bidders to get the mastheads up and running as soon as possible.

North & South is one of the titles still up for sale.

'However, given the volume of interested parties and the number of requests for clarification/further information, the vendor has elected to work through a process to assess a range of options together with a process that affords all parties a reasonable level of time to consider the opportunity appropriately.'

It said the preference was still to sell the mastheads as one lot, or in four 'families', such as the current affairs titles in one block. Staff have been to register if they want to be spoken to by potential buyers.

Subscribers were told the delay was “good news for a positive outcome”.

But some potential bidders are understood to have been frustrated by the process and had backed away.

EY said it would make no comment.

Remaining bidders for the magazines include Kowhai Media, which publishes New Zealand Geographic and is making an offer for the current affairs titles, members of Bauer's former staff, among others. NBR publisher Todd Scott said his interest in 'at least three' of the Bauer titles was premised on first purchasing Stuff.

Duncan Greive, founder of The Spinoff, said, while he had originally expressed an interest in Bauer titles, he had since changed his mind.

There had been more interest than he anticipated, he said, including from some 'high-net worth individuals'.

'I felt like the titles were going to be really hard work for a significant period of time. To make it work you'd have to acquire them cheaply and be willing to go through a relatively long process to build them up to sustainability. It's likely the market will be very challenging for an indeterminate period.'

He said, while there was an opportunity with the titles, they were so beloved by many New Zealanders that it would be hard to make changes to them.

There was a sense that the process had not been handled well, he said, with an email sent out to interested parties that revealed others' identities early on. Bidders were given a hard deadline, only to have it extended.

As time went on, the titles were potentially becoming less valuable.

'Every day people are missing their Listener they are learning new habits.'

Subscribers have been told they will be given a credit for each magazine they did not receive from their subscription but autorenewals and direct debits have been suspended.

Media expert Gavin Ellis said some of Bauer’s titles would be more sought-after than others. North and South and Listener were likely to have a future, he said, but it could be a tougher proposition for magazines such as Metro with a smaller circulation. “Not all will sell.”

Kelly Bertrand, former deputy editor of the New Zealand Woman’s Weekly, said titles such as the Weekly and Listener were likely to be popular with buyers because of their standing in the marketplace. “There are other great titles in there – Next is often overlooked but it brings so much to the female conversation with its Woman of the Year awards.”

The Australian edition of Woman’s Day is currently for sale in New Zealand.

Bertrand has started a new website, Capsule, with Emma Clifton, Nicky Dewe and Alice O’Connell.

Bertrand said they had been amazed at the response they had received so far. Readers were “desperate and hungry” for good content and story-telling, she said.

Former Metro editor Henry Oliver has also started a zine, Essential Services.