THE PRICE OF EVERYDAY: How much is Meredith Corp. willing to pay Reader’s Digest Association for Every Day with Rachael Ray, should the deal go through? According to sources, around $10 million. The title, which has a 1.7 million rate base and has made Adweek’s Hot List and Advertising Age’s A-List, has faced hard times lately, with ad pages down 34 percent during the third quarter, to 106, and first-half newsstand dropping 17 percent. Still, many are shocked that Reader’s Digest Association is willing to part with the title for such a small sum.
Staffers at Every Day with Rachael Ray believe things will change if Meredith takes control of the magazine. “Short of people dancing in the office, everyone is happy,” said a source. “It’s a brand that so much can be done with but it couldn’t be here. Now you go to Meredith with all of these resources — digital, corporate contracts. Maybe we’ll even get a receptionist.” Meredith has a stable of titles that complement Every Day with Rachael Ray, including Ladies Home Journal, Better Homes and Gardens, Recipe.com and the EatingWell Media Group.
This story first appeared in the October 14, 2011 issue of WWD. Subscribe Today.
On Wednesday, Meredith Corp. issued a press release that said Meredith had a deal with RDA, on principal. Meredith was jumping the gun, said sources at RDA, but a deal could be imminent. “This is a game they’ve been playing, back and forth, for a while,” one source said.