Seeking to boost revenues in an industry stung by a decline in advertising, Stagebill Media has purchased Los Angeles-based Performing Arts Magazine.
Layoffs are expected as New York-based Stagebill Media seeks to save at least $500,000 a year by consolidating operations.
Performing Arts publishes 630,000 programs each month for 42 theater, symphony and dance organizations statewide. This includes the Ahmanson Theatre, Mark Taper Forum and Hollywood Bowl. Stagebill, whose 1.5 million monthly circulation includes the Geffen Playhouse, covers a combined 120 venues in 22 cities with an average monthly circulation of 2.1 million.
“There’s no question it is the perfect fit,” said Dana Kitaj, a managing partner of Stagebill Media. “We’re clearly serving the same audiences in different parts of the country. We’re hoping that we will be able to grow into new markets and consolidate in the markets that we’re in.”
Kitaj was formerly president of Performing Arts, which was founded in 1965 by her father, Gilman Kraft. The publications will be overseen by a newly formed subsidiary, Stagebill Media, which now serves about 20 percent more venues than Playbill, the dominant publisher of Broadway and Off Broadway programs.
Stagebill and Performing Arts have been operating under a joint advertisement agreement for the past year a period in which ad revenues fell 17 percent for Performing Arts and remained level for New York-based Stagebill.
Neither side would disclose the transaction price. But business brokers said the magazine would likely sell for its $7.2 million annual revenue base plus a small premium. A source at Performing Arts said the purchase price was less than $10 million.
Stagebill Media wants to expand its new holding to other California venues. But those plans are on hold as efforts will be made to combine the production, finance, distribution and editorial operations in L.A. and New York.
Although details are being ironed out, the plan is to close Performing Arts’ New York office and consolidate the L.A. operations of Stagebill and Performing Arts. Both currently operate out of the same Santa Monica Boulevard building. There will be an unspecified number of layoffs among the combined staff of 90.
“We’re going to evaluate our personnel requirements and act according,” said Gerry Byrne, Stagebill’s president and chief executive. “Is there a possibility there will be layoffs? Absolutely.”
The acquisition comes at a time when ad revenues are down 5 to 30 percent over last year. Last week’s terrorist attack is expected to cause advertising to plummet further.
“Any comparisons made before (Sept. 11) really don’t hold much water,” said Monica Karo, chief media officer for L.A.-based TBWA Worldwide, which purchases ad space.
Performing Arts and Stagebill’s annual revenues, $7.2 million and $15 million respectively, come largely from financial services, automobiles, pharmaceuticals, fashion and beauty products and retail.
“We are in a good position because we own a very important niche on a national basis,” said Byrne. “During the soft times, the affluent still have disposable financial services. The past year has been tough. But relative to the marketplace, we’re doing exceptionally well.”
