The Johari family has bought back its stake in publishing house MaXposure Media group from Gruner+Jahr for an undisclosed amount. With this deal, it marks the exit of the European publishing arm of the media conglomerate Bertelsmann from the Indian market. Gruner + Jahr had acquired a majority stake of 78.75% in MaXposure back in 2011.
Gruner+Jahr earlier this month sold mobile ad network SeventyNine and digital agency NetworkPlay to the SVG group. The terms of the deal was pegged at $15 million according to a report by the Times of India. In 2012, Gruner+Jahr had acquired from SVG Media and then had bought NetworkPlay from Capital 18 and Webchutney. Earlier in July, NetworkPlay had confirmed to MediaNama that Gruner+Jahr is planing to restructure the business with former CEO Ampreet Singh’s exit from the company.
According to industry sources the MaxPosure deal is pegged at 5.25 million euros. With this deal, MaxPosure will now be solely owned by the Johari family with Prakash Johari acting as managing director and CEO and Vikas Johari will lead the creative teams as publisher and chief operating officer.
In January, the FIPB nixed Gruner+Jahr’s proposal to increase its stake from 78.75% to upto 100% in MaXposure. Started in 2006, MaXposure publishes over 30 magazines in the corporate consumer space especially in the in-flight magazine market. It publishes the in-flight magazines of Air India, Vistara and SpiceJet.
Other moves in magazines
In 2013, Outlook pulled the plug on three of its licensed international titles: People, Marie Claire and Geo. It is interesting to note that Geo was licensed from Gruner + Jahr (G+J) International but the magazine was not launched through MaxPosure even though Gruner+Jahr had presence in India to do so.
Note that another German magazine major Burda had also acquired the Indian media house Exposure Media Marketing and had announced plans to invest Rs 150 crore in the Indian market last year. This was after its group company Burda Druck GmbH had bought out HT Media’s 51% stake in its joint venture HT Burda Media Ltd for Rs 60 crore.
– On the state of the magazine industry in India; Outlook shuts three magazines
– A brief history of SVG, Gruner+Jahr, SeventyNine and NetworkPlay relationship
– SVG Media buys NetworkPlay and SeventyNine from Gruner+Jahr