NEW YORK (AP) -- In a deal that would combine ownership of some of the best-known celebrity gossip tabloids, American Media Inc., with holdings including the National Enquirer, is acquiring the publisher of rival newspapers the Globe and Sun for $105 million.
American Media also owns the Star and Weekly World News, while Globe Communications Corp. has the National Examiner.It was the first acquisition by American Media Inc. since being purchased in May for $300 million by Evercore Partners, a New York investment firm headed by former Deputy Treasury Secretary Roger Altman.
David Pecker, the chairman of American Media, said the company formed in the deal announced today would be "one of the largest publishers of celebrity-driven content in the world," with annual revenue of $400 million.
Pecker came to American Media from Hachette Filipacchi Magazines, where he was chief executive of the French-owned publisher of magazines such as Elle, Mirabella and George.
Facing declining circulation, the National Enquirer has been trying to improve its credibility over the past few years by moving away from stories about Elvis sightings and alien abductions. It also tweaked its design last month, making its headlines look more modern and bold.
But other parts of the American Media family are sticking to more traditional tabloid fare. A recent issue of Weekly World News has a story about the exact day the world will end and another about UFOs being piloted by angels and demons.
Pecker said American Media's goal has been to "differentiate and distinguish each of the print properties from one another, and that same strategy will be applied to the Globe properties."
The Globe this week has more coverage of the JonBenet Ramsey case and the breakup of radio shock jock Howard Stern's marriage, while its sister publication, the Sun, touts features on the world's biggest cat and a clairvoyant who predicted that the Virgin Mary would appear at the Lourdes shrine this year.
As part of the deal to acquire Globe, the two companies will also consolidate their Florida properties and move their combined headquarters to the Globe's main building in Boca Raton. American Media is currently based in Lantana.
The owner of the Globe, Mike Rosenbloom, will take a nonexecutive post of chairman in the new company. He will also keep a significant ownership position.
Evercore Partners advised CBS Corp. in its recent merger with Viacom Inc. It also advised Dow Jones on a deal with financial news provider Reuters to combine their interactive news databases.