I have been asked by many newsagents over the last couple of days about whether the purchase of ACP (and Network Services) by Bauer is good for magazines and the newsagency channel. As I noted a couple of days ago, I see the purchase as being good. Here’s why:
- Bauer is a successful publisher with a proud history in publishing. It is better for ACP to be owned by a well resourced publishing family than a private equity business.
- Bauer has experience in several marketplaces. Their experiences provide them insights to better inform business planning for Australia.
- In the UK, Bauer is used to newsagents receiving 25% of cover price.
- They also operate the Bauer Postal Network in Germany competing with Deutsche Post. This network can reach 82% of all German households. BPN grew out of their logistics business. Check out their website – they have a good sense of humour.
- They care about their titles. This is evident from their corporate websites. Content is the key. I like how they represent themselves overseas.
- They have experience distributing magazines in Germany. In purchasing ACP they will purchase Network Services.
As with any takeover, there are bound to be changes. I’d expect them to be focused on driving sales and thereby the return Bauer achieves from their ownership.
If mags do not have along term life why would they buy it beats me
Jim, Bauer is a smart business. They would have purchased as they would have assessed value. Magazines have good mid-term prospects – maybe longer but we can’t say right now.