Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

American Media Inc. Is Based In Florida But Still Keeps Heading South

Posted by: Jon Fine on October 27, 2006

More bad news from American Media, the battered private equity play fronted by David Pecker and which owns the National Enquirer and The Star, writes Keith Kelly of the New York Post:

For the third time, American Media has blown a deadline for restating its earnings, and David Pecker’s tattered tabloid publisher now won’t issue cleaned up financial numbers until early 2007, the company said yesterday.

Almost precisely one year ago I wrote a column outlining the fix the company and Pecker were in. Chief among them was declining cash flow, which continued to defy Pecker’s rosier predictions:

Last November he predicted American Media’s revenues would rise to $600 million [in 2005] and post EBITDA of $200 million. Now he says ‘06 will bring in revenues around $560 million and EBITDA of around $145 million.

Turns out these ‘06 numbers, too, proved too rosy, reports Kelly:

In its August conference call, the company revised its estimates downward to $506.4 million in revenue and $117.3 in cash flow for the 2006 fiscal year.

Now it estimates the revenues will be even lower - $504.9 million - and cash flow of only $110.9 million, a 5.4 percent drop from the latest revision.

Reader Comments

Jeff Holbrook

January 11, 2007 9:31 AM

Why is everyone surprised? Executives look good when they have good product that can save them, not the the case with a business built on slock. When the executive in this case, David Pecker, has serious management issues, it becomes a descending spiral of PR as the business fails.

Post a comment



The media world continues to shapeshift as new forms arise and old assumptions erode. On this blog, Bloomberg Businessweek will provide sharp analysis and timely reports on the transformation of this constantly changing terrain.



BW Mall - Sponsored Links

Buy a link now!