Primedia To be Disolved CeO Resigns

Owner of auto magazines, Intellechoice and other automotive media going away.

NEW YORK April 17, 2003; Cyntia Barrera Diaz writing for Reuters reported that Magazine publisher Primedia Inc., which is mulling the sale of its flagship title Seventeen, on Thursday said Chairman and Chief Executive Thomas Rogers had resigned because of differences with the board of directors.

A Primedia spokesman declined to elaborate on the reasons for Rogers' departure, which the company said was a mutual decision by Rogers and the board. Rogers could not be reached for comment.

"Tom and the board recognize we have real differences in the strategic direction of the company that surfaced in the contract renewal process," said board member Henry Kravis in a release issued by Primedia. Kravis is a founding partner of Primedia's controlling shareholder, buyout firm Kohlberg Kravis Roberts & Co.

The company also said it was confident it would be able to meet first quarter and full year guidance.

Charles McCurdy, previously president of Primedia, was named interim chief executive at Primedia. Dean Nelson, chief executive of consulting firm Capstone Consulting, was named interim chairman.

Primedia, which also publishes New York magazine, in February said it expected first-quarter earnings before interest, tax, depreciation and amortization to increase 20 percent over the previous year. Full year EBITDA growth was seen in the high-single-digit percentage range.

DIFFERING IDEAS

Recent media reports suggested Rogers' future with Primedia was on the ropes as KKR, which was unhappy with the company's performance, weighed Rogers' contract renewal. A spokeswoman for KKR declined to comment and said Kravis was not taking calls.

"It appears that Mr. Rogers had more ambitious growth ideas for the company (that did not involve acquisitions)," Merrill Lynch analyst Karl Choi said in a research report. "But the board (and KKR) would prefer Primedia to stick to its core operations given the company's limited resources."

Primedia tapped Rogers, a former NBC executive, in 1999 after then Chairman and CEO William Reilly retired, in a move aimed at increasing the company's Internet operations.

Under Rogers' tenure, Primedia embarked on an ambitious plan that included acquiring Web information and directory site network About.com for $690 million and the U.S. magazine unit of British media group EMAP Plc for $515 million.

Shortly after the acquisitions, the company encountered one of the worst advertising downturns in decades and had a massive debt pile, prompting it to sell assets, cut jobs and change its business focus.

Last year the company sold its American Baby group to Meredith Corp., its Chicago magazine, to a unit of newspaper publisher Tribune Co and the Modern Bride title to rival publishing house Conde Nast.

Primedia is currently seeking a buyer for its Seventeen magazine, and analysts have suggested it may also consider selling its New York title.