The bids are in for Discover Magazine, and there are at least ten offers, Discover Media CEO Henry Donahue tells Folio.
News of the Discover sale emerged earlier this month. The magazine touted its prospects at the time; Donahue told Folio, “The time is right to go out and look for new investment. We’re doing it because we think it’s a good time to go out.”
Still, a significant proportion of the bids appear unserious, says Folio:
Donahue, Andy Buckholtz — who’s brokering the deal — and Discover’s two private equity owners, WallerSutton and Sandler Capital Management, will sift through the offers to whittle down the list to about a half-dozen serious bidders. “Some people are just fishing,” says Donahue.
An anonymous source in the Folio report calls the pool of potential buyers “people on the fringe and oddball investors.” Not exactly a heartwarming assessment of the demand side, especially given Discover‘s relatively healthy cash-flow situation. It probably doesn’t bode well for Discover‘s unprofitable fellow sale-aisle resident Newsweek, despite its broader field of 70 interested parties.