Despite much speculation and uncertainty, the sale of Pacific Magazines to Bauer Media is set to go ahead.
The $40 million deal, which is scheduled to be completed this Friday, will provide Pacific’s current owner Seven West Media some considerable financial relief.
Speculation has been rife Bauer would seek to find a way out of the deal which was negotiated in October last year before the collapse of the advertising market.
Earlier this year Bauer closed its New Zealand operation, and today it announced redundancies for 70 workers in Australia, with further workers temporarily stood down due to the Covid uncertainty.
Bauer also indicated some magazine titles would move to a digital-only model but declined to nominate which brands would be affected.
Despite these cuts, TV Blackbox understands Bauer Australia will fulfil its obligation to acquire Pacific Magazines from Seven. Further redundancies will occur at Pacific, once Bauer assumes control.
TV Blackbox has also seen ASIC filed documents which indicate had Bauer Australia been unable to complete the deal financially, it’s parent company Heinrich Bauer Verlag KG had committed to “provide financial support to the level required by the Group to allow it to fulfil all obligations as and when they fall due.”
Bauer Media Australia is the publisher of well-known brands including TV Week, The Australian Women’s Weekly, NW and Take 5, while Pacific Magazines is responsible for titles including New Idea, That’s Life, Who, Men’s Health and Marie Claire.
