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Getbig Main Boards => Gossip & Opinions => Topic started by: Insider X on March 12, 2008, 10:46:13 AM
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Shawn Ray breaks the bad news on American Media through an email.
March 12, 2008 -- IT'S a race against the clock for American Media, publisher of the Star, the National Enquirer, Shape and Men's Fitness, following a downgrade by Moody's yesterday on the publisher's approximate $1.08 billion in debt. The downgrade was prompted by "heightened concern that American Media's liquidity profile and weak free cash flow prospects will likely be insufficient to repay the company's maturing debt in 2009," according to Moody's Although over $400 million of the debt isn't due until early next year, a lot is riding on the current fiscal quarter, because the mountain of debt has now moved to "current" debt. If the company has not figured out a way to solve its looming debt load then it could be forced into a default. The ideal way out, would be if American Media CEO David Pecker and Ron Burkle, the billionaire supermarket magnate behind Source Interlink Companies, finally figure out a way to complete the long-discussed merger of the two concerns. On that front, the banks are demanding that the two sides come up with more cash to complete a deal, because banks are skittish about lending to such a debt-heavy concern. A combined company would carry debt of over $2 billion.
While Pecker and Burkle are still said to be talking and to be interested in getting a deal done, not all of the financial partners are convinced of its merits. The two sides still need to find a way to come up with about $200 million more in cash, according to one source. But what if the merger doesn't happen? "They'll have to cut a deal with their banks and senior lenders before they file their next 10K," said the source. The 10K contains the annual financial results for the fiscal year ending March 31 - just over two weeks away. The report won't have to be filed until late June - but it is drawing near. If there is no agreement in place, the independent auditors would have to insert a note warning of pending doom. As one bondholder noted, "It becomes a kind of a domino effect." Bondholders ultimately could roll over and issue the company more junk bonds, postponing the due date. But to do that, American Media will have to offer another one-time "sweetener," usually a seven-figure fee to the bondholders. If American Media gets new junk bonds, they could carry even higher interest rates than the 10.25 percent due on the current notes.
Moody's new rating for the company has sunk to Caa2 from Caa1. To make matters worse, Moody's placed all American Media ratings under review for further downgrades. But one analyst said despite the down grade, bondholders aren't in a panic. "Operationally, they are doing better lately," said one bondholder. "We'll see what happens." Said another source with knowledge of the situation, "They are going to be making news in the next three months, one way or another." An analyst said, American Media "can play chicken with bondholders to get them to ex tend." In that scenario, the alternative is to issue new bonds due in 2011 or a "messy bankrupt company with bonds much lower." Said the analyst, "Bondholders probably blink and take the rollover bond."
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(http://www.fatchicksinpartyhat.com/media/fatdance1.gif)
nananaaaana nananaaaaana heeeoooooho nananaaana ;D ;D
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Shawn Ray breaks the bad news on American Media through an email.
???
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Shawn Ray breaks the bad news on American Media through an email.
March 12, 2008 -- IT'S a race against the clock for American Media, publisher of the Star, the National Enquirer, Shape and Men's Fitness, following a downgrade by Moody's yesterday on the publisher's approximate $1.08 billion in debt. The downgrade was prompted by "heightened concern that American Media's liquidity profile and weak free cash flow prospects will likely be insufficient to repay the company's maturing debt in 2009," according to Moody's Although over $400 million of the debt isn't due until early next year, a lot is riding on the current fiscal quarter, because the mountain of debt has now moved to "current" debt. If the company has not figured out a way to solve its looming debt load then it could be forced into a default. The ideal way out, would be if American Media CEO David Pecker and Ron Burkle, the billionaire supermarket magnate behind Source Interlink Companies, finally figure out a way to complete the long-discussed merger of the two concerns. On that front, the banks are demanding that the two sides come up with more cash to complete a deal, because banks are skittish about lending to such a debt-heavy concern. A combined company would carry debt of over $2 billion.
While Pecker and Burkle are still said to be talking and to be interested in getting a deal done, not all of the financial partners are convinced of its merits. The two sides still need to find a way to come up with about $200 million more in cash, according to one source. But what if the merger doesn't happen? "They'll have to cut a deal with their banks and senior lenders before they file their next 10K," said the source. The 10K contains the annual financial results for the fiscal year ending March 31 - just over two weeks away. The report won't have to be filed until late June - but it is drawing near. If there is no agreement in place, the independent auditors would have to insert a note warning of pending doom. As one bondholder noted, "It becomes a kind of a domino effect." Bondholders ultimately could roll over and issue the company more junk bonds, postponing the due date. But to do that, American Media will have to offer another one-time "sweetener," usually a seven-figure fee to the bondholders. If American Media gets new junk bonds, they could carry even higher interest rates than the 10.25 percent due on the current notes.
Moody's new rating for the company has sunk to Caa2 from Caa1. To make matters worse, Moody's placed all American Media ratings under review for further downgrades. But one analyst said despite the down grade, bondholders aren't in a panic. "Operationally, they are doing better lately," said one bondholder. "We'll see what happens." Said another source with knowledge of the situation, "They are going to be making news in the next three months, one way or another." An analyst said, American Media "can play chicken with bondholders to get them to ex tend." In that scenario, the alternative is to issue new bonds due in 2011 or a "messy bankrupt company with bonds much lower." Said the analyst, "Bondholders probably blink and take the rollover bond."
THEY BETTER START MAKING A MAGAZINE PEOPLE WANT TO BUY.
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when flex stopped posting a lot of girls in skimpy outfits and steroid reviews I stopped buying. They recently have added them back in but I don't care.
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Nothing in that passage states that FLEX magazine is in trouble, or that American Media's woes are a DIRECT result of FLEX's lack of sales. From what I remember, the last time this was brought up, it was the other magazines' slumping sales that were/are causing the problems, along with other business issues.
Since I first registered on GetBig nearly 5 years ago, certain folks have been proclaiming doom and gloom for FLEX (most of them were MD fans).
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Flex rocks.
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Nothing in that passage states that FLEX magazine is in trouble, or that American Media's woes are a DIRECT result of FLEX's lack of sales.
Since I first registered on GetBig nearly 5 years ago, certain folks have been proclaiming doom and gloom for FLEX (most of them were MD fans).
ARE YOU A STOCK HOLDER?
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ARE YOU A STOCK HOLDER?
No, and you don't need to be one to see that FLEX magazine isn't even mentioned.
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Shawn Ray breaks the bad news on American Media through an email.
March 12, 2008 -- IT'S a race against the clock for American Media, publisher of the Star, the National Enquirer, Shape and Men's Fitness, following a downgrade by Moody's yesterday on the publisher's approximate $1.08 billion in debt. The downgrade was prompted by "heightened concern that American Media's liquidity profile and weak free cash flow prospects will likely be insufficient to repay the company's maturing debt in 2009," according to Moody's Although over $400 million of the debt isn't due until early next year, a lot is riding on the current fiscal quarter, because the mountain of debt has now moved to "current" debt. If the company has not figured out a way to solve its looming debt load then it could be forced into a default. The ideal way out, would be if American Media CEO David Pecker and Ron Burkle, the billionaire supermarket magnate behind Source Interlink Companies, finally figure out a way to complete the long-discussed merger of the two concerns. On that front, the banks are demanding that the two sides come up with more cash to complete a deal, because banks are skittish about lending to such a debt-heavy concern. A combined company would carry debt of over $2 billion.
While Pecker and Burkle are still said to be talking and to be interested in getting a deal done, not all of the financial partners are convinced of its merits. The two sides still need to find a way to come up with about $200 million more in cash, according to one source. But what if the merger doesn't happen? "They'll have to cut a deal with their banks and senior lenders before they file their next 10K," said the source. The 10K contains the annual financial results for the fiscal year ending March 31 - just over two weeks away. The report won't have to be filed until late June - but it is drawing near. If there is no agreement in place, the independent auditors would have to insert a note warning of pending doom. As one bondholder noted, "It becomes a kind of a domino effect." Bondholders ultimately could roll over and issue the company more junk bonds, postponing the due date. But to do that, American Media will have to offer another one-time "sweetener," usually a seven-figure fee to the bondholders. If American Media gets new junk bonds, they could carry even higher interest rates than the 10.25 percent due on the current notes.
Moody's new rating for the company has sunk to Caa2 from Caa1. To make matters worse, Moody's placed all American Media ratings under review for further downgrades. But one analyst said despite the down grade, bondholders aren't in a panic. "Operationally, they are doing better lately," said one bondholder. "We'll see what happens." Said another source with knowledge of the situation, "They are going to be making news in the next three months, one way or another." An analyst said, American Media "can play chicken with bondholders to get them to ex tend." In that scenario, the alternative is to issue new bonds due in 2011 or a "messy bankrupt company with bonds much lower." Said the analyst, "Bondholders probably blink and take the rollover bond."
Lol , isnt this post exactly the type of things Blechman wanted Special Ed to say , and then ED said `FERK NO BIOTCHES!`
Guess Md is going ahead wif the tactics nontheless
MD will never be class , its very sad
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Nothing in that passage states that FLEX magazine is in trouble, or that American Media's woes are a DIRECT result of FLEX's lack of sales. From what I remember, the last time this was brought up, it was the other magazines' slumping sales that were/are causing the problems, along with other business issues.
Since I first registered on GetBig nearly 5 years ago, certain folks have been proclaiming doom and gloom for FLEX (most of them were MD fans).
I registered an account slightly after you did:
http://www.getbig.com/boards/index.php?action=profile;u=1835
Which is odd seeing how my user number is lower than yours.
Since I first registered on getbig nearly five years ago, certain folks proclaim evolution to be "goo to you by way of the zoo" and say that people still "aren't buying it" even though the consensus in the scientific community is virtually unanimous.
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I registered an account slightly after you did:
http://www.getbig.com/boards/index.php?action=profile;u=1835
Which is odd seeing how my user number is lower than yours.
Since I first registered on getbig nearly five years ago, certain folks proclaim evolution to be "goo to you by way of the zoo" and say that people still "aren't buying it" even though the consensus in the scientific community is virtually unanimous.
Are you on crack or something? This is, what, the NTH TIME you've brought up evolution on thread that has ABSOLUTELY NOTHING TO DO WITH THAT TOPIC.
Get a clue!!!!
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Are you on crack or something? This is, what, the NTH TIME you've brought up evolution on thread that has ABSOLUTELY NOTHING TO DO WITH THAT TOPIC.
Get a clue!!!!
I do have a clue - my clue is that you were raised in a religious household and purposely reject the overwhelming scientific evidence proving evolution because you don't want it to interfere with your invisible friend in the sky ideology.
You are one of the rare people who is actually otherwise intelligent yet still religious. You have a high IQ and no excuse. :)
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I do have a clue - my clue is that you were raised in a religious household and purposely reject the overwhelming scientific evidence proving evolution because you don't want it to interfere with your invisible friend in the sky ideology.
You are one of the rare people who is actually otherwise intelligent yet still religious. You have a high IQ and no excuse. :)
A high IQ does not require me to reject my religious beliefs. BTW, another bright guy, responsible for making milk safe to drink and curing chickens of deadly disease also rejected the "overwhelming scientific evidence proving evolution". When you start tossing your dairy products and chicken breasts, because of that, let me know.
What does any of this have to do with America Media or FLEX magazine?
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I registered an account slightly after you did:
http://www.getbig.com/boards/index.php?action=profile;u=1835
Which is odd seeing how my user number is lower than yours.
Since I first registered on getbig nearly five years ago, certain folks proclaim evolution to be "goo to you by way of the zoo" and say that people still "aren't buying it" even though the consensus in the scientific community is virtually unanimous.
:-\
Matt I'm sure you are aware of the many financial rewards available to those who can prove evolution. Perhaps you should take one of these foundations up in their offer......
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No, and you don't need to be one to see that FLEX magazine isn't even mentioned.
Does not matter-if they go BK, which they will (who the fuck pays 350 MILLION!! for M&F, Fles and "Shape"??) all of the magazines will be impacted adversely.
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If AMI is willing to sell them off piecemeal, MD will buy Flex. If they get a cash infusion, they'll buy out MD. I've already started Sucking up to both of them!
FlexSucks.com (http://FlexSucks.com)
MDSucks.com (http://MDSucks.com)
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Does not matter-if they go BK, which they will (who the fuck pays 350 MILLION!! for M&F, Fles and "Shape"??) all of the magazines will be impacted adversely.
Indeed. But, my point was that American Media's woes are not indicative of FLEX magazine's success. And, it certainly has nothing to do with FLEX losing ground to MD, which usually gets brought up by the MD folks.
It was my impression that American Media bought FLEX, M&F, and Shape to help boost the profits.
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Shape does very well, I think around 1.2M circulation, but is a bit light on ads.
Flex does closer to 50,000 circulation but ad volume is good.
They need to put Gunter and Jay on the cover of the Enquirer and Star Magazine to really sell copies!
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all leading up to the economic collapse of 2012 or earlier
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Time for Joe Weider to come out of retirement and buy back his magazine empire at a bargain price.
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Shape does very well, I think around 1.2M circulation, but is a bit light on ads.
Flex does closer to 50,000 circulation but ad volume is good.
good? it like 2/3ers ads....
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I do have a clue - my clue is that you were raised in a religious household and purposely reject the overwhelming scientific evidence proving evolution because you don't want it to interfere with your invisible friend in the sky ideology.
You are one of the rare people who is actually otherwise intelligent yet still religious. You have a high IQ and no excuse. :)
God damn, Matt!
Great stuff!
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paper mags are useless, soon anyone with have a handled phone/internet browser/gps/mp3/vid player in the pocket with an internet conexion...paper is a thing of the past.
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paper mags are useless, soon anyone with have a handled phone/internet browser/gps/mp3/vid player in the pocket with an internet conexion...paper is a thing of the past.
I disagree... have you tried reading online versionf os magazines? It's kinda a pain in the ass. Sometimes you just wanna stretch out and read without sitting at a computer. And there's always the need to read in the bathroom... can never replace mags for that.
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well there's a reason why ALL papers mags worldwide are going online and losing money on their paper formulas..
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paper mags are useless, soon anyone with have a handled phone/internet browser/gps/mp3/vid player in the pocket with an internet conexion...paper is a thing of the past.
And people felt television would destroy the radio industry too. ;)
There will always be a use for newspapers and magazines. They will simply need to adjust to lower profit margins.
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I disagree... have you tried reading online versionf os magazines? It's kinda a pain in the ass. Sometimes you just wanna stretch out and read without sitting at a computer. And there's always the need to read in the bathroom... can never replace mags for that.
It's called the Mac Airbook and it's lighter than a copy of MD or Flex. It fits right on your lap and you can post on Getbig while taking a crap. In addition to Youtube, Redtube, and YouPorn, you can even watch 'Entourage' right from your toilet!
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It's called the Mac Airbook and it's lighter than a copy of MD or Flex. It fits right on your lap and you can post on Getbig while taking a crap. In addition to Youtube, Redtube, and YouPorn, you can even watch 'Entourage' right from your toilet!
But god forbid you drop it in the toilet by accident.
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But god forbid you drop it in the toilet by accident.
god forbid you drop it anywhere
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No matter what - magazines, books and newspapers will still be around. We still get 'Entertainment Magazine' as well as a myriad of bodybuilding magazines, even with the age of the internet. But yes, when cable came along, many said the papers would go. When the internet came along, many said television would be gone. When the DVDs and video tapes came along, many said the movies would go down. All can adapt.
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Shawn Ray breaks the bad news on American Media through an email.
March 12, 2008 -- IT'S a race against the clock for American Media, publisher of the Star, the National Enquirer, Shape and Men's Fitness, following a downgrade by Moody's yesterday on the publisher's approximate $1.08 billion in debt. The downgrade was prompted by "heightened concern that American Media's liquidity profile and weak free cash flow prospects will likely be insufficient to repay the company's maturing debt in 2009," according to Moody's Although over $400 million of the debt isn't due until early next year, a lot is riding on the current fiscal quarter, because the mountain of debt has now moved to "current" debt. If the company has not figured out a way to solve its looming debt load then it could be forced into a default. The ideal way out, would be if American Media CEO David Pecker and Ron Burkle, the billionaire supermarket magnate behind Source Interlink Companies, finally figure out a way to complete the long-discussed merger of the two concerns. On that front, the banks are demanding that the two sides come up with more cash to complete a deal, because banks are skittish about lending to such a debt-heavy concern. A combined company would carry debt of over $2 billion.
While Pecker and Burkle are still said to be talking and to be interested in getting a deal done, not all of the financial partners are convinced of its merits. The two sides still need to find a way to come up with about $200 million more in cash, according to one source. But what if the merger doesn't happen? "They'll have to cut a deal with their banks and senior lenders before they file their next 10K," said the source. The 10K contains the annual financial results for the fiscal year ending March 31 - just over two weeks away. The report won't have to be filed until late June - but it is drawing near. If there is no agreement in place, the independent auditors would have to insert a note warning of pending doom. As one bondholder noted, "It becomes a kind of a domino effect." Bondholders ultimately could roll over and issue the company more junk bonds, postponing the due date. But to do that, American Media will have to offer another one-time "sweetener," usually a seven-figure fee to the bondholders. If American Media gets new junk bonds, they could carry even higher interest rates than the 10.25 percent due on the current notes.
Moody's new rating for the company has sunk to Caa2 from Caa1. To make matters worse, Moody's placed all American Media ratings under review for further downgrades. But one analyst said despite the down grade, bondholders aren't in a panic. "Operationally, they are doing better lately," said one bondholder. "We'll see what happens." Said another source with knowledge of the situation, "They are going to be making news in the next three months, one way or another." An analyst said, American Media "can play chicken with bondholders to get them to ex tend." In that scenario, the alternative is to issue new bonds due in 2011 or a "messy bankrupt company with bonds much lower." Said the analyst, "Bondholders probably blink and take the rollover bond."
Hi, Romano.
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No matter what - magazines, books and newspapers will still be around. We still get 'Entertainment Magazine' as well as a myriad of bodybuilding magazines, even with the age of the internet. But yes, when cable came along, many said the papers would go. When the internet came along, many said television would be gone. When the DVDs and video tapes came along, many said the movies would go down. All can adapt.
plus books and mags are easier on the eyes to read.
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Flex rocks.
I subscribe to both FLEX and MD. they seem to sum up the BB scene pretty well. I am fan of bodybuilding and don't follow major team sports , period. I also enjoy track and field.
I hope FLEX does fine, it is a major BB mag and if you like BB you want the main mags to make it.
Howard
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This is a finance issue that has little to do with whether the publications are making an operating profit or not... it's just a reflection of some bonehead fuccking up the proforma, overvaluing the mags, and paying too much for them largely with debt.
Sucks for the current owners, but if the mags are making an operating profit, they will continue to exist, whether they end up merged, spun off, or sold off in a bankruptcy liquidation.
Winner = Joe Weider
Loser = Pecker and his investors.
Collateral damage = Flex staff who likely have to deal with shrinking budgets and enormous pressure to meet AMI's unrealistic expectations.
Now, whether paper magazines have any future in the long run or not... that's a separate conversation.
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Joe Weider and his typically in this situation does not define him as a winner. He is a parasite for leaving AMI high and dry like this.
::)
You lead a pretty sheltered life, dontcha, Matt?
I wouldn't doubt if he cooked the books before selling his magazine portfolio too.
What is Weider's racial background again...?
While he probably fed Pecker a wildly optimistic view of the mags' potential, I doubt he colored outside the lines... he simply played off Pecker's greed and desire to get a deal done. He Jewed him. Happens every day... welcome to the business world! :D
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Oh, you mean the Jew owned corporate world? Yeah, the "dog eat dog" (Jew eat white European) world of business?
Yeah, manipulation is a virtue. ::)
Whatever happened to honesty? If genes for manipulation didn't exist, people wouldn't need to be so cautious when taking financial risks. It's the scum who make us so protective of our assets.
Those who end up on the wrong side of these types of deals have no one to blame but themselves. They don't do their homework, and they "force" the numbers to work even when it would be obvious to a third grader they don't because they are high on greed, emotion, or both.
This isn't a shady contractor selling a little old lady a bad roof... it's guys in the big leagues who should know better. Caveat emptor.
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Those who end up on the wrong side of these types of deals have no one to blame but themselves. They don't do their homework, and they "force" the numbers to work even when it would be obvious to a third grader they don't because they are high on greed, emotion, or both.
This isn't a shady contractor selling a little old lady a bad roof... it's guys in the big leagues who should know better. Caveat emptor.
NO ONE pays $350 million FOR ANYTHING without doing a full proof due diligence check.
The fact is Peckerhead over paid Weider for the mags like the Texas Rangers overpaid for A-Rod.
NO ONE was going to pay Weider $350 million, except some bonehead, and that bonehead was Peckerhead.
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Those who end up on the wrong side of these types of deals have no one to blame but themselves. They don't do their homework, and they "force" the numbers to work even when it would be obvious to a third grader they don't because they are high on greed, emotion, or both.
This isn't a shady contractor selling a little old lady a bad roof... it's guys in the big leagues who should know better. Caveat emptor.
True enough, but I imagine that Weider had the foresight to know Pecker would ultimately end up in a bad spot after the deal. I couldn't personally live with that. That comes down to IQ, intent, and GENES.
As Woten said:
Europeans may have been the most fearsome race of conquerors in history, but we did it all with some class. For every sin, ten virtues. For every prison, ten cathedrals. For every massacre, ten universities. For every depredation, a thousand acts of kindness.
http://forum.bodybuildingpro.com/showthread.php?t=3496
People by and large will eventually revolt against manipulative tactics.
But hey, Rome rose and fell. People do make wrong decisions when driven by the exact qualities you described. Ultimately Pecker does need to live with the consequences of his actions, which were his alone.
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True enough, but I imagine that Weider had the foresight to know Pecker would ultimately end up in a bad spot after the deal. I couldn't personally live with that. That comes down to IQ, intent, and GENES.
Not Weider's problem. If Pecker valued the mags at $350M, who is Weider to question it? If you sold your house to someone at the height of the California housing bubble at the then market price, then a year later it was worth 25% less, should you feel bad even though you and any idiot out there (except the idiot buyers at the time) could have seen it coming?
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If this case is really so simple, then you are correct. I'm saying that Weider likely cooked the books using a Jewish recipe. :-\
If he falsified the financials, then he would be guilty of fraud and could be held accountable criminally and in civil court. But I doubt that's the case. In all probability, it was as I said and Pecker's crew simply forced the numbers and used the most wildly optimistic scenarios, all at a time when the publishing industry was undergoing a fundamental change for the worse. Again, this kind of thing happens all the time.