Blazers/Seahawks Owner Paul Allen's Vulcan Ventures has
agreed to buy The Sporting News from Times Mirror, adding
the publication's "cachet and content" to his "Wired World"
stable of new media, entertainment and technology companies,
according to Christopher Carey of the ST. LOUIS POST-
DISPATCH. Allen, who will keep the business and its 120
employees in the St. Louis area, "plans to use The Sporting
News as a brand name to build a following for new Internet
and cable television ventures." The Sporting News President
& CEO James Nuckols called the deal the "best possible
outcome" for the publication: "We'll run very independently,
and yet we'll be in this sort of business incubator." The
publication was offered as a package with its line of annual
preview magazines, coffee-table sports books and Web site at
sportingnews.com, and Allen "was one of a half-dozen final
bidders." Nuckols noted that Allen's "backing should help
The Sporting News more fully exploit the Internet,
especially the applications made possible by high-speed
access." Allen owns Charter Communications, the fourth-
largest cable operator in the U.S. But Nuckols added that
while cable TV "could also expand the magazine's audience,
it is unlikely to hit the airwaves anytime soon." Nuckols:
"I don't think we're counting on launching Sporting News TV"
(ST. LOUIS POST-DISPATCH, 2/17). Vulcan Ventures President
William Savory: "As we further develop the comprehensive
portal and channel offerings for our cable customers, we
will look for precisely these type of branded, established
vertical content offerings" (Vulcan). Although the value of
the deal was not disclosed, Alex Kuczynski of the N.Y. TIMES
reports that sources familiar with the talks put the sale at
$100M. The acquisition is part of Allen's "strategy to
develop relationships with consumers on the Internet through
magazine sites," and one Vulcan exec noted that the company
"was exploring other magazine options." Nuckols said that
Allen's ownership of the Blazers and Seahawks "would not
affect the magazine's coverage" (N.Y. TIMES, 2/17).
TALE OF THE TAPE: Kuczynski adds that circulation of
The Sporting News "has increased slightly" during the past
couple of years, from 520,000 in '97 to 540,000 in '98. Ad
revenue at the magazine was "estimated" at $23M for '99
(N.Y. TIMES, 2/17). The Web site, at sportingnews.com,
which was launched in '97, generates around 35 million page
views each month (WALL STREET JOURNAL, 2/17).
