Primedia Consolidates Consumer Magazine Operations

Posted on June 30, 2000

John Loughlin, president and CEO, Primedia Magazine and Internet Group, has announced the implementation of a plan to integrate Primedia Consumer Magazines with Primedia Special Interest (Enthusiast) Publications by forming one company, the Primedia Consumer Magazine & Internet Group. The move is a step toward integrating and strengthening the operations of Primedia's consumer magazine and Internet businesses. As a result of the restructuring, Primedia announced the elimination of approximately 50 positions at facilities throughout the country.

The Primedia Consumer Magazine & Internet Group will be divided between two editorial and publishing units (enthusiast titles and ``broad reach'' consumer titles), with one central support services unit assisting the operations of both.

The Enthusiast Unit will include all titles and affiliated Internet sites from what was formerly known as Primedia's Special Interest Publications and McMullen Argus Publications. Some of these include; Automobile Magazine, Power & Motor Yacht, Fly Fisherman, Horticulture, and American History. The ``Broad Reach'' Unit will include all publications and related Internet sites from the former Primedia Consumer Magazines. Among them; New York, Seventeen, Modern Bride, and American Baby. The core service and support functions, including purchasing, manufacturing, systems, finance, accounting, HR, web incubation/development and circulation, will be integrated and support the entire group.

In making the announcement, Mr. Loughlin said, ``Since joining Primedia earlier this year, I have been focused on a plan to help make our consumer magazine and Internet business more effective and competitive. Primedia's consumer magazines are so rich in content that it puts us in a terrific position to be able to take full advantage of convergent media. Our goal is to drive integration between traditional media and new media operations to ensure that the content, sales and promotional resources of the core business will be maximized, at the same time as we expand interactive media businesses. A more fully integrated organizational structure supports these goals.''

In a related development, Tom Rogers, chairman and CEO of Primedia, confirmed that David Tanzer, President and CEO, Primedia Consumer Magazines has resigned from his position. ``David has done a very commendable job in a variety of important positions at Primedia during his seven years with the company. We wish him great success as he leaves us to explore new challenges.''

The Enthusiast unit will include all of the titles and associated Internet sites currently part of Primedia Special Interest Publications. This division will also include all of the McMullen Argus publications, as well as GR8RIDE.com. Dan McCarthy will remain as President and CEO, and will continue to have P/L responsibility for the unit with direct oversight responsibility for all editorial, marketing and sales functions. The ``broad reach'' consumer titles unit will include all of the publications and affiliated Internet sites currently part of Primedia Consumer Magazines. A new president will be hired for this unit.

Dan Aks, has been promoted to chief operating officer (COO) of the consolidated Primedia Magazine & Internet Group. Mr. Aks will oversee all manufacturing, systems, business development, web incubation, and other operational issues for the combined group. Armand Madeo will report to Mr. Aks and serve as vice president, information technology.

Steve Aster, who joined Primedia this week from Disney Worldwide Publishing, will serve as executive vice president, consumer marketing for the combined group. Mr. Aster will be charged with exploiting Primedia's website resources and enhancing traditional subscription marketing activities. In addition, he will work with the single copy team to strengthen Primedia's presence and performance at newstand.

Linda Jenkins will serve as senior vice president, finance. She will oversee the consolidated finance and accounting departments, and, on an interim basis, serve as CFO.of the combined group. Debra Chirichella, who has COO of the Enthusiast publications will be leaving the magazine group to join Primedia's B-to-B group as executive vice president, operations, reporting to David Ferm, President of Primedia's B-to-B group.

On an interim basis, David Kaput will serve as senior vice president, human resources for the Primedia Consumer Magazine & Internet Group. Mr. Kaput will manage HR issues for the combined magazine/Internet group until a replacement is named, at which time he will join Primedia corporate.

Dan McCarthy, Dan Aks, Steve Aster, Linda Jenkins and David Kaput will all report directly to Mr. Loughlin, as will the president of the consumer unit.



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