NEW YORK: International media conglomerate Reed Elsevier has announced it will sell its Reed Business Information (RBI) magazine division, which includes the Variety, Publishers Weekly, and Broadcasting & Cable titles.
The corporation disclosed that it is divesting New York-based RBI to reduce exposure to cyclical advertising markets.
“RBI is a well managed, high quality business as evidenced by the success of its online growth and the control of costs,” said Reed Elsevier CEO Crispin Davis. “Its advertising revenue model and the inherent cyclicality fit less well, however, with the subscription-based information and workflow solutions focus of Reed Elsevier's strategy.”
Salina Le Bris, VP of corporate communications and PR for RBI, said Thursday that the publishing division had no additional comment.
RBI recorded a 2007 adjusted operating profit of $233 million. Of that, 60% came from advertising, and 30% was earned online.
Reed Elsevier also announced Thursday that it has agreed to buy risk-management vendor ChoicePoint for $4.1 billion and combine its assets with the LexisNexis technology.