Penske Media Buys VarietyTuesday, October 9, 2012
The Hollywood trade paper Variety has been acquired by Deadline owner Penske Media Corp. and its financial backer, hedge fund Third Point, for about $25 million.
The Los Angeles Times reports that while Variety competes online, its weekday daily edition and weekly magazine are no longer the must-reads in Hollywood that they once were.
Santa Monica-based Penske said it plans to expand Variety's presence around the globe. The publication has covered Hollywood for more than 100 years and is still considered a top industry news source. But it has lost ground in the last six years to Deadline.com, Santa Monica-based Penske's Hollywood news site.
The Wrap describes the deal as a digital age story of a blog buying Hollywood's oldest trade paper in a bid to reverse the print publication's declining fortunes.