How much is THR parent losing? Or earning?

A source tells Bloomberg Businessweek that Prometheus Global Media, which owns the Reporter, Adweek, Billboard, and other trade magazines, is on track to lose as much as $10 million a year. "Nonsense," says Prometheus owner Richard "Mad Dog" Beckman. "We were profitable in 2010, and profits will increase in 2011." Then again, investment returns might be beside the point:

Neil Stiles, president of Variety Inc., says he can't make Beckman's math work but also wonders if Prometheus might have less immediate motivations than turning a profit on its magazines. "What they're clearly about is asset value, not P&L," Stiles says. "That's the stunning thing about private equity. You don't actually have to make a profit, you just have to look like you might one day, and then you sell to another private equity firm. It's sort of like a Pass the Parcel game at a children's birthday party, but instead of passing a nice present, you're passing an explosive device. The last private equity firm ends up getting their face blown off."

By the way, Beckman has denied a report in the NY Post that Prometheus investors are looking for the exits. Who could the source for that be? "I have no idea," he told the magazine, "but I'd love to wring their neck if I could find out."


More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
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Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent Trades stories:
THR's Stephen Galloway wins entertainment journalist of the year
Finke, Waxman, Penske, Min: Battle of the Hollywood trades
Nikki Finke and site she started are 'parting ways'
Deadline staff starts to turn on Finke, it seems
Finke says she's locked out of Deadline.com

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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