Condé Nast and Hearst Magazines are officially in cahoots; today, they announced the launch of an independent company, PubWorx. The new company will manage production, procurement, and circulation for both publishers and offer custom programs to outside companies. They’ve brought on Al Peruzza, former EVP of business operations at Reader’s Digest, as CEO, who will report to a board made up of a medley of execs from Condé and Hearst.
The 50/50 venture will include staff and back-office functions from both publishers, and will offer third-party companies services like procurement, production, and circulation management operations.
“PubWorx is an innovative new company that combines the commitment to excellence and publishing expertise of both Condé Nast and Hearst, and offers it to third-party companies for the first time,” said Bob Sauerberg, president and CEO at Condé Nast. “Having the two parent companies as its first clients sets PubWorx up for success and we are looking forward to the new company developing untapped business opportunities with its unique position in the market.”
“In addition to serving Hearst and Condé Nast, Pubworx will provide important, turn-key infrastructure for the industry, allowing publishers to access the scale of our two companies for production and circulation functions, freeing them to concentrate on innovation, content creation and advertising revenue,” said David Carey, president of Hearst Magazines.
This isn’t a first for the two publishers; 40 years ago, they formed Comag, a marketing and retail distribution company, which they sold in the U.S. in 2012, but still own and operate in the U.K. But does this more recent cooperation mean a larger scale merger is on the not so distant horizon?
