• by Erik Sass , November 17, 2006

In another big catch for private equity investors, Reader's Digest Association has been purchased by an investor group led by Ripplewood Holdings, LLC, the publisher announced Thursday. The acquisition of the venerable, slightly stodgy brand is yet another sign that private equity firms see big opportunities in traditional media, including consumer magazines. It also furthers the trend of media companies going private again after a period as publicly traded entities.

Part of the attraction of Reader's Digest Association doubtless stems from its successful launch of Every Day with Rachael Ray, a lifestyle magazine emanating from the cheerful personality of the popular TV chef. Although Ray positions herself differently than Martha Stewart--claiming the mantle of laid-back everywoman--their media empires bear a striking resemblance to one another, with products on multiple platforms built out around their particular sensibilities.

The success of Every Day helps offset troubles at the publishers' other big brands, including flagship Reader's Digest. According to the latest FAS-FAX report from the Audit Bureau of Circulations, in the first six months of 2006 Reader's Digest saw newsstand sales decline 7.4% compared to the same period last year--ending at around 434,000, while subscriptions remained flat. In January-October 2006, ad pages were down 3.7% and ad revenue was 1.5% compared to the same period last year, according to the most recent data from the Publishers Information Bureau (PIB). Taking a longer view, since 2000 total paid circulation has fallen from over 12 million to just 10 million.

Like other public media companies that have gone private in 2006, the Reader's Digest Association hopes the move will free the company from Wall Street pressures. CEO Eric Schrier said: "Much has been written about going private, and of the advantages for some organizations when time-consuming public disclosure and shorter-term, quarter-to-quarter pressures are alleviated." For its part, Ripplewood has experience managing other publication businesses, including the Time Life brand, previously owned by Time Inc., and the World Almanac.

Motto Magazine: Get Back to Work

The magazine formerly known as Worthwhile has relaunched as Motto, which focuses on how to be a happy worker. The premiere issue launched on November 9. Motto's mission is mission: specifically, exploring how to create dynamic, energized careers, offices, and even whole companies. Motto calls itself the "voice of capitalism with a soul," typified by its first cover story on "Money and Meaning."

Primedia Launches Slam Apparel

Primedia, publisher of basketball mag Slam, is partnering with Fine World LLC to launch a line of branded apparel associated with the magazine. The product line will include men's and boy's sports apparel, T-shirts, shorts, sweatshirts, sweatpants, jerseys, jackets, warm-up suits, performance wear, headwear, backpacks and gym bags. The apparel goes on sale this winter. Slam covers the NBA, college, high school, and amateur basketball, as well as gear and video games.

Broadway Magazine Set to Bow This Spring

This coming March, devotees of the Great White Way will get their own magazine, with a rather novel distribution plan--150,000 copies of each issue will be distributed to theatergoers, including 80,000 free copies given to ticket buyers at the TKTS booth in Duffy Square. The magazine will include original interviews, reviews, previews, and related theater writing republished from respected theater authorities like The New York Times and The New Yorker.

Jewcy Serves Up Succulent Semitic Site

Jewcy--one of the new generation of media companies targeting young Jews with hip, snarky, and culturally relevant content--launched a combined ideas-and-culture magazine online store this week. Jewcy.com's take on Jewish pride and identity skews feisty and funny, covering faith, pop culture, politics, and public affairs, welcoming user-generated content and social networking. The site is edited by Tahl Raz, previously an editor with Fortune Small Business, who aims for nothing less than to reinvigorate Jewish media.