By: (AP) The company that publishes the
Chicago Tribune said Wednesday that it will acquire
Chicago magazine from Primedia Inc. for $35 million in cash.
Chicago Tribune Co., a subsidiary of Tribune Co., plans to operate the magazine as an independent publication with its own editorial and advertising staffs. The magazine's current publisher, John Carroll, and editor, Richard Babcock, will continue in their jobs.
"
Chicago magazine brings another dynamic dimension to Tribune's robust array of local media choices. It is a clear leader in providing entertainment and other helpful information to its loyal readers and delivering excellent results for advertisers who target this very desirable audience," Scott C. Smith, president and CEO of Chicago Tribune Co. and publisher of the
Chicago Tribune, said in a statement.
Primedia put the magazine up for auction earlier this year as part of its plan to pay down debt. The company also owns
New York magazine and several other publications.
Primedia shares were up 25 cents to $1.31, an increase of almost 24%, in trading on the New York Stock Exchange. Tribune shares were down $1.20, or about 3%, to $39.58.
The purchase marks a departure in corporate strategy for Tribune Co., which sold off the magazines it acquired from its purchase of Times Mirror Co. in 2000 to concentrate on newspapers, television, and the Internet.
The monthly
Chicago magazine features articles on fashion, entertainment and society, as well as monthly restaurant and entertainment listings.
The magazine began publication in 1952 and was acquired by Primedia in 1995. It has a circulation of 182,000 and places its overall readership at 1.5 million.
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