Blogs published on 27-03-2020

Uncertainty over Bauer, on its Pacific Magazines acquisition

POS SOFTWARE

It appears that the Bauer may be reconsidering its proposed purchase of Pacific Magazines deal despite getting ACCC approval.

Everyone is sure it has to do with the uncertainly of coronavirus.

If I was Blauer,  I would be wondering about coronavirus firstly what it will do to circulation. Some think that with more people at home, reading magazine will grow in popularity.

Still, that is not the big revenue issue but the fact that that the outlook for advertising spending is down, the prime problem here is the postponement of significant events such as the Olympics.

If it does not go ahead, I think that it is unfortunate for many magazine resellers, as the commercial reality today means the acquisition it is necessary to produce cost cuts required by the industry.

Having said that despite what has been said the circulation declines in the last few years, I expect more magazine titles closing. What is important is that this acquisition may reduce this trend.

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