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Tuesday, August 15, 2006

Business Mag Sales Aborted in US

Reuters is reporting that business media sales are being aborted due to low prices being offered. This should come as no surprise to seasoned watchers of the UK scene.

Multiples have been falling for at least a year as buyers downgrade their growth expectations because of the continuing fall in demand for advertising. We are seeing a rare glimpse of business evolution happening at the speed of light. The old model is dying, but in denial, and the new model, at least in B2B has not yet materialised. There is no doubt that vertical niche business web sites will be the future of the sector but as yet few publishers have got past the notion of a companion website. Search has disintermediated many of the old media brands. For the imaginative and the brave there are rich pickings to be had in world where dinosaurs are dying out.

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