Primedia and it's guides earn some money

BY SDH Primedia, a one time consumer magazine giant which has since slimmed down to Apartment and car guides posted a quarterly profit on the strength of the apartment segment. Is this an indication the more and more people are looking for apartments instead of houses due to the current mortgage crisis? Primedia was the mother ship for dozens of titles which have since been sold off in groups and have since been turned into companies. Primedia's outdoor group was sold to InterMedia Partners which spun the group of outdoor titles like Hunting, Game & Fish, Guns & Ammo and others into a company called InterMedia Outdoors. Primedia's enthusiast media titles like Slam, Motor Trend, Soap Opera Digest and about 67 other titles were sold off to Ron Burkle's Source Interlink Companies. Primedia said the apartments segment, which made up about 80 percent of its advertising revenue in the fourth quarter, would gain in 2008 from improving conditions in the apartment-leasing sector with occupancy rates falling slightly to more normalized levels in some markets. Primedia posts quarterly profit from cont ops [Reuters]

David Pecker fires one fall guy and hires a future fall guy

-SDH David Pecker the incompetent-esque CEO of American Media Inc (AMI) has made yet another change in his senior management circle by tossing his 6th CFO John Craven. As you know AMI is notorious for being financially irresponsible and is said to still be in talks with billionaire Ron Burkle about merging with the Burkle controlled Source Interlink Companies. Rumor has it that if both companies do indeed get into bed together, David Pecker would be on top running the show to which we said "NOOOOOO". The problem with AMI isn't just the CFO, it’s the CEO who should also be shown the door. Pecker blew his load years ago and should be written out of the picture if and when AMI does fold into Source Interlink. Come on what will it take to push Pecker out the door? On the job 14 months, Craven is credited with cleaning up AMI's financial reporting and bringing the publisher of Star and National Enquirer into compliance with the Securities and Exchange Commission. However, there was behind-the-scenes tension between Craven and AMI CEO David Pecker, who blamed the finance chief for delays in making the company compliant and thus slowed down AMI's ability to complete a merger with Ron Burkle's Source Interlink Cos. ANOTHER AMI MONEY CHIEF WRITTEN OFF [NYP]

note to ron burkle: noooooooo!

-BY MARTY It looks like billionaire supermarket god Ron Burkle is about to add the embattled tabloid publisher, American Media Inc (AMI) to his collection of companies. If the deal does indeed reach a close, AMI will merge with Source Interlink's media unit. But that's not the kicker. Rumor has it that AMI's incompetent CEO David Pecker will become head of the new company in a management shake up many say is pending at Source Interlink, and to that we say Holy Shit! David Peck in charge of a much bigger operation? If this is true, who slipped something in Ron Burkle's drink during the discussions? Perhaps Pecker himself. Putting the man in charge who religiously misses financial reporting deadlines and puts the blame elsewhere is just beyond comprehension for us. We thought a deal would have been the end of Pecker as we know it. If and when this deal closes, look for heads to roll (that's a given) along with a mass exodus in senior management. Oh God save the underlings. Sources close to the deal expect Pecker to become head of the new company, despite a very rough patch over the last few years that included falling rate bases and restated financials at AMI. Burkle's Coup [Slate]

Morning Wire: Joy to the world, Tribune sells to Zell

-SHOMARI HINES After months and months and months of an ass dragging auction process, the board of Tribune has decided that they like Sam Zell's offer. But we won't get too excited until this deal is official because the Tribune board is now known for their flip flopping. Early on out David Geffen had his hand in the whole thing but skipped out really fast. We really thought the company would have went to L.A. billionaires Ron Burkle and Eli Broad but the moment Sam Zell entered the race, Tribune wanted him to be the one, you know being a fellow Chicagoan and all. Sam Zell, a flamboyant Chicago real estate tycoon who has never run a newspaper, has won the battle of the billionaires for the Tribune Company, meeting the company’s demand for a higher bid to match one from Ronald W. Burkle and Eli Broad, a person close to the talks said today.Precise terms of the deal are expected to be disclosed this morning, though the price is $34 a share, or $8.2 billion, this person said. The centerpiece of his proposal is a complex financial structure known as an employee stock ownership plan, which is to pay for much of the deal. Tribune Accepts Real Estate Magnate’s Bid [NYT]

Ron Burkle's Carl Icahn like thoughts

Grocery tycoon Ron Burkle who recently bid for media giant Tribune Company along with fellow billionaire Eli Broad in an attempt to join the media elite club, is adding activist to his credit as well, with fresh inspiration from corporate thug Carl Icahn. Burkle, who runs the investment firm Yucaipa, plans to launch a “corporate governance” fund early next year. Burkle says he realized the impact his next fund could have after talking to the veteran investor Kirk Kerkorian, who now rankles the executive ranks of General Motors despite owning just a 10% stake in the ailing carmaker. “He wields tremendous influence,” marvels Burkle, who is intent on doing much the same at much smaller companies. When you're rich, you can buy anything including your very own bully pass. Ronald Burkle Thinks Like an Activist [DealBook]