Future Network, the international magazine group, has acquired the US’ second best-selling guitar magazine, Guitar One, from Cherry Lane Magazines for £1.5 million in cash.
This is Future’s second acquisition of a US guitar magazine business this year; in September the company bought
Guitar World and related titles for £10 million (see
Future Network Profits Up 22%, Buoyed By Strong US).
Future is currently on an expansion drive. During 2003 the group has announced four acquisitions, for a total of £18.2 million. Total turnover of the 11 titles acquired amounted to £23.2 million in 2002. Future expects each transaction to contribute positively to group earnings in 2004.
The company says that it is committed to expand both by magazine launches and by selective acquisitions. During 2003 to date, 11 magazines have been acquired and 13 new titles launched. Future expects to commit no more than £2.5 million in respect of 2003 net losses to launches.
Future chief executive Greg Ingham said: “The acquisition of Guitar One is consistent with our strategy of strengthening our centres of excellence. Future already publishes the leading guitar magazines in both the UK and the US and this is a further useful step in carefully building on the strength of our US portfolio.”
