It is going to pay off big time for former Goldman Sachs exec Greg Smith to write about his stint in the belly of the Wall Street beast.
Smith scored a mind-boggling $1.5 million advance to chronicle his life and times at the investment bank.
Smith exited this month with a scathing resignation that was published as an Op-Ed piece in the New York Times.
Soon after, publishers began vying for a book from the South African native, who rose through the ranks in Goldman’s London office.
By Monday, with the price tag flirting with the $1 million mark, it was down to two bidders, Penguin and Hachette Book Group.
Hachette’s Grand Central Publishing finally nailed the deal with a $1.5 million advance yesterday.
Smith was represented by Peter Fedorko, at N.S. Bienstock, a talent agency known for repping on-air news and reality-TV stars — although it has been trying to expand its literary footprint.
Fedorko did not return calls.
Smith, who was once featured in Goldman recruitment videos, said in his Op-Ed piece that as more of the bank’s old guard exited, a “toxic and destructive” environment took hold.
The open letter created an instant sensation, with many Wall Street critics applauding Smith, while others, including Mayor Mike Bloomberg, blasted him for publicly rebuking his ex-employer.
At the time of his resignation, Smith was reportedly making about $500,000 a year — which means his book pay day is roughly triple his annual salary.
Executives at Hachette did not return calls for comment.
Philly fever
Final bids are due today for the Philadelphia Media Network, which includes the Philadelphia Inquirer, the Philadelphia Daily News and Philly.com.
Private-equity firms Alden Capital and Angelo Gordon, which won the media property at a bankruptcy auction two years ago, are expected to accept a bid from a group of prominent Philly executives, including parking lot magnate Lewis Katz and Democratic power broker George Norcross.
The group is bidding $60 million, according to a report on Philly.com, which means the private-equity firms are going to take about an $80 million haircut on their deal.
The company had adjusted profit last year of only about $4 million, down from $15 million a year earlier. Sources speculate the PE firms are interested in wrapping up the deal as soon as possible.
A rival preliminary bid from Jeffrey Perelman, another Philadelphia businessman, was said to be significantly lower.
In the end, a Perelman vs. Perelman bidding war — pitting father Ray Perelman against his estranged son, Jeffrey — did not end up playing a huge role.
Ray Perelman was rebuffed when he tried to submit a rival bid but was told by Evercore Partners, which was running the auction, that he was too late to the party.
He then attempted to affiliate with the Katz/Norcross group that was originally pieced together with the help of former Pennsylvania Gov. Ed Rendell.
Rendell was not putting any cash in himself, and when some began questioning the motives of the Philly power brokers trying to do the deal, Rendell dropped out.
Ray Perelman, who was said to have backing from his other son, Revlon owner and billionaire Ron Perelman, also pulled out in the past week, according to Philly.com.
Wall down
Chris Hughes, the Facebook co-founder who bought the New Republic from Marty Peretz and others earlier this month, yesterday made his first big move.
An announcement on the New Republic website said, “While readers will continue to need to subscribe in order to read our content in print or on tablet devices, access to recent TNR content on the web will be free.”
And in a possible hint about where Hughes is heading, the posting said that “current digital-only subscribers may elect to receive the print edition at no additional charge.”
Maxim cuts
It was widely expected that Cerberus, the PE firm that controls laddie magazine Maxim, would make sweeping cutbacks after it outsourced the CEO job at parent Alpha Media Group to Jack Kliger and Kliger Media.
Kliger, in an unusual arrangement, is also the de facto CEO of TV Guide, owned by PE firm Open Gate Capital.
Yesterday, Maxim met expectations by downsizing, mostly on the business side, where many jobs are expected to be outsourced.
Among the editorial casualties was Seth Porges, a senior editor.
“We were sad to see them go,” said Editor-in-Chief Dan Bova, who took over from Joe Levy last fall.
“They were great guys who made great contributions. and we hope they continue to contribute in some way in the future.”