Last week, Dickey Publishing announced it had acquired the assets of Modern Luxury, which includes 26 titles in 12 markets, like New York, L.A. and Chicago. The Dickey Family controls Cumulus Media, which will operate Modern Luxury through Cumulus’ Structured Management Services division.
Modern Luxury was expected to sell for $10 million but ended up going for much higher. Some think too high. The magazine company, though operating in many markets, is losing money, sources have said. Earlier this year, Modern Luxury ousted its CEO, Michael Kong, after defaulting on $120 million in debt.
One buyout exec says the price tag was in line with what Modern Luxury’s banks– GE Business Financial Services and NewStar Financial– were seeking. “That’s been the range,” the source says.
Macquarie Capital advised the Dickey family. Berkery, Noyes & Co. represented Modern Luxury.