The death of billionaire Bruce Wasserstein could place the future of his media holdings in peril — particularly New York magazine, which is controlled by a family trust.
“There is a good chance it will go into play again without Bruce there,” said one executive who had tried to buy the title in the past.
Despite Wasserstein’s personal attachment to New York, many think the money-losing magazine will eventually be sold. Sources say the magazine might end up in the hands of a group of insiders, or another wealthy investor.
“I think Harvey [Weinstein] and Mort [Zuckerman] would jump at a chance to buy it if it came on the market again,” said one executive. Both were among the odd collection of highfliers who were trying to buy New York when Wasserstein swooped in with a $55 million stealth bid five years ago.
Strauss Zelnick, who was the underbidder on BusinessWeek, and Niche Media CEO Jason Binn are other potential players. Insiders such as Anup Bagaria, the former vice chairman of Wasserstein & Co., who runs the magazine’s publisher, New York Media Holdings, might also put together a bid.
New York was seen as a vanity purchase when the Lazard boss bought it from Henry Kravis-controlled Primedia.
At the time, the magazine was losing about $2 million a year. By investing through a family trust, Wasserstein shielded his prize from the pressure of having to produce quarterly profits for outside investors.
Sources say New York has been hit hard by the slump in retail ads, and losses have probably ballooned to $5 million a year. Wasserstein’s investment companies also own The Deal and a stake in Penton Media.