Penske Media has partnered with hedge fund company Third Point to acquire Variety for around $25 million. Penske Media is the parent company of several media properties like BoyGeniusReport.com, India.com, OnCars, Movieline, and Deadline.com.
Penske Media purchased the company from Variety’s owner Reed Elsevier. This deal was considered a fire sale because at one point Variety was doing so well that “Reed turned down a couple of offers of between $300 million and $350 million? according to Variety editor Peter Bart.
Some of the bidders that Penske beat included billionaire Ron Burkle and Avenue Capital, who controls the National Enquirer. Penske plans to keep Variety independent with 120 people on staff. Nikki Finke of Deadline.com may contribute to Variety as well. Variety has around 28,000 daily subscribers according to BPA Worldwide.
Variety.com is behind a pay wall that is known for having terrible log-in glitches. Variety was founded 107 years ago and has been owned by Reed Elsevier since 1987.