Bye Macmillan, and thanks for the staff

The company was created in 1989 as a publishing holding company called K-III Communications Corp. Backed by the New York City investment firm Kohnberg Kravis Roberts & Co., the business was run by a group of bigwigs from Macmillan Publishers, including now-CEO William F. Reilly, President Charles McCurdy, and Vice Chair/General Counsel Beverly Chell. K-III's founders also managed to hire away 45 other Macmillan executives to staff the venture. The new company purchased Intertec Publishing (technical and trade titles) and Macmillan Book Clubs (which was renamed Newbridge Communications). Both became the anchors for K-III's Specialty Media and Education Groups. The company has had an insatiable appetite for acquisition ever since. Kohlberg Kravis Roberts still controls 86% of the company.

Something of a shopping habit

In February 1990, K-III picked up International Thompson Transport Press, a specialized directory publisher, which soon became the base for the PRIMEDIA Information Group. In the spring of 1991, K-III bought the all-American schoolhouse staple Weekly Reader, and encyclopedia and reference book publisher Funk & Wagnalls. That summer it launched a Consumer Magazines division, after beating out Conde Nast and Hearst in a bid for Murdoch Magazines, the publisher of New York, Soap Opera Digest, Seventeen, and Premiere.

From 1992 to 1994, the company built up its holdings in the educational arena. In 1992, it purchased an educational video distributor called Films for the Humanities and Sciences. Soon after, it picked up publishers World Almanac Books and World Almanac Education. In October 1994, the company entered the national spotlight with its 1994 purchase and revamping of then-floundering current events school network Channel One. Under K-III's control, the television show, a remnant of Chris Whittle's collapsed media empire, flourished. The award-winning news events and trends show is now seen by 40% of the nation's secondary school students.

In January 1995, the company established a Special Interest Publications unit after procuring PJS Publications, former producer of 13 special-interest titles. That November the company made its stock market debut. The following year, it purchased Cahners Consumer Magazines (publisher of 14 magazines, including Modern Bride, Sail, and American Baby). It also took Westcott Communications, which specializes in multimedia products for workplace training and education.

A new era

Unfortunately, the company's debt has grown as quickly as its reach. In 1997 it sold off some non-core units, and the popular New Woman and Premiere magazines. That October the company "began a new era." It changed its name to PRIMEDIA, in order to reflect its "prime media brands," and set a new corporate strategy focused on three specialized media segments. The Specialty Magazines division covers specialty consumer magazines and technical and trade magazines; the Education unit focuses on classroom and workplace learning; and the Information division covers consumer and business information.

Through a joint venture, PRIMEDIA helped launch the Wedding Network, the first independent bridal registry Web site, in March 1998. It also bought two publishing divisions of Cowles Media from McClatchy Company and nine teen-oriented magazines. Soon after, it formed PRIMEDIA Ventures, a fund to invest in technology projects such as early-stage Internet companies. The company also expanded its international reach with the purchase of three construction magazines focused on Russia, Asia, and Latin America. The launch of five Chinese-language technical and trade magazines have also bolstered PRIMEDIA's global scope.

In 1999 PRIMEDIA announced that it would sell its supplemental education unit, which includes Weekly Reader, American Guidance Service, and PRIMEDIA Reference. Proceeds from the sale of the business will be put towards the company's $2.5 billion debt.

New CEO

Primedia announced in September 1999 that Tom Rogers, formerly an executive vice-president at NBC, would be manning the helm as CEO and chairman. Primedia hopes that Rogers can invigorate its internet business. The new chief is expected to use Primedia's offline resources to develop new-media initiatives such as web sites and cable-television programming. Rogers' experiences prodding NBC online and as president of NBC cable should help him carry out his new duties.

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