Cosmopolitan-owner Hearst buys Lagard titles for #560m
Hearst, the owner of Cosmopolitan magazine, has bought the international magazines business of Elle-owner Lagardère for £560m.
Lagard will continue to own the Elle trademark and will grant a licence to Hearst, receiving a yearly fee Photo: Getty Images
By Amanda Andrews 11:00PM GMT 31 Jan 2011
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The cash deal will include titles Psychologies and Inside Soap, as well as a licence for Elle.
The offer includes the sale of 102 titles across 15 countries – the UK, US, Russia, Ukraine, Italy, Spain, China, Japan, the Netherlands, Czech Republic, Hong Kong, Mexico, Taiwan, Canada and Germany.
Lagardère will continue to own the Elle trademark and will grant a licence to Hearst, receiving a yearly fee linked to the international sales of the business.
As part of the licensing deal, which does not include merchandising, Lagardère will receive an estimated €8m annual royalty payment from Hearst.
The agreement will make Hearst the second-largest US magazine publisher by circulation, behind Time Inc, and the largest publisher in the world by number of editions.
Lagardère said that it expects the international magazine division it is selling to Hearst to have revenues of €774m in 2010.
Hearst's offer is subject to regulatory approvals in some countries, so the deal will not close until the second half of the year.
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