Time, Dale W. Lang Launch Joint Venture on Women’s Magazines
NEW YORK (AP) _ Time Inc. and the owner of Working Woman Inc. are launching a joint venture that will purchase McCall’s and own a total of three women’s magazines, Time announced Thursday.
Time said it and Dale W. Lang each would invest about $44 million. The venture, with Lang as managing partner, will own Working Woman and has signed a letter of intent to buy McCall’s and Working Mother magazines from The McCall Publishing Co., Time said.
McCall’s, by far the largest of the three monthly publications, was founded in 1876 and has a circulation of about five million. The magazine’s purchase price was not disclosed.
Working Woman, founded 10 years ago, has a circulation of 770,000, and eight-year-old Working Mother has a circulation of 550,000.
Time, which on Nov. 6 announced it was closing down its Picture Week magazine because of economic uncertainty and weakness in the national advertising market, said the new investment was an opportunity to gain a foothold in the growing women’s magazine field.
″We believe the combination of Lang’s expertise with our strength in circulation will enable Working Woman, McCall’s and Working Mother to become even more competitive in the future,″ said Robert L. Miller, a group publisher of Time Inc. who will represent the company on the joint venture’s board of directors.
Time said the venture expected to have revenues of $125 million and pretax operating margins of about 10 percent in its first year.