Hachette outbids Emap for control of Red
Ciar Byrne The Guardian
Red, the UK women's magazine aimed at readers in their "middle youth", will no longer be published by Emap after the magazine giant struck a £17m deal with its former partner Hachette.
The future of the glossy magazine, launched five years ago as part of a joint venture between the two publishing companies, had looked uncertain ever since Emap announced the end of its partnership with Hachette earlier this year.
Under the terms of the break-up, the ownership of Red was decided by a sealed bid in which each party put forward its estimate of the value of the magazine.
When the bids were opened this afternoon it emerged Hachette had placed the 100% value of Red at about £34m.
It is believed Emap's bid was for just over half that amount.
"Red has achieved much, particularly recently under the inspiring editorship of Trish Halpin," Paul Keenan, the chief executive of Emap consumer media, said today.
"Emap offered a full price for the title based on what we thought Red would achieve over the next five years. Hachette UK offered more."
The 11-year, 50:50 joint venture between Hachette and Emap to publish Red, Elle, New Woman and Top Santé came to an end in August when Hachette acquired Attic Futura, the UK publisher of best-selling teen magazine Sugar, for about £40m.
It was clear from the outset that Elle and its spin-offs, Elle Girl and Elle Decoration, would revert to Hachette, while New Woman and Top Santé would stay with Emap. Kevin Hand, the chairman of Hachette UK, masterminded the successful bid.
Mr Hand, while the chief executive of Emap, oversaw the publisher's disastrous acquisition of the US Peterson portfolio of magazines.
The deal paves the way for Emap to launch another woman's magazine.
A source close to the publisher said: "The deal has poured £17m into Emap's coffers and the company is rich in ideas.
"It wouldn't surprise anybody at Emap to see something pretty spanking to come out into that sector soon."