MCG Capital Acquires Upside Magazine

Posted on September 28, 2001

Upside Magazine, a technology business magazine, has secured financing from MCG Capital Corporation of Arlington, VA and will continue its publication and production schedule, according to executives at the magazine. The magazine will be operated by UMAC, Inc., which, together with MCG, acquired the magazine and related assets through foreclosure of Upside Media, Inc. The Washington Post reported that only 25 employees remain at the publication.

Upside will scale back its online publication, UpsideToday, and has announced plans to refocus it to concentrate more on inside technology trends and issues and less on the volatile technology stock market. Previously, it was announced that the website would be shut down, but an article from Editorial Director David Bunnell entitled "UpsideToday not dead yet!" suggested otherwise.

Upside Magazine has announced the appointment of Edward Ring as CEO of the new entity, which includes Upside Magazine, associated online assets and conference activities. David Bunnell, Upside Media's CEO and Editor, will be Editorial Director and Jerry Borrell will be Editor-in-Chief. Ed Ring was the first CFO for the magazine, serving in that capacity from 1991 through 1997.

Bunnell commented, ``I'm glad Ed has accepted this challenge, and I'm looking forward to helping him rebuild Upside Magazine as well as the online and event businesses. The good news here is that Upside Magazine has survived one of the biggest downturns in technology and media history. When the market comes back we will be a major player.''

``Upside has published for the nation's technology industry longer than any other magazine,'' said MCG Managing Director Andrew Jacobson. ``Management has right-sized its operations and now has the ability to wait out the difficult economic climate on a sound financial footing,'' he said.

Upside Magazine was founded in 1989 by Tony Perkins and Rich Karlgaard. MCG Capital is a financial services company that primarily lends to and invests in small-and medium-sized private companies with revenues from $5 million to $100 million within the media, communications, technology, and information services industries.