February 21, 2006: 10:08 AM EST
NEW YORK (CNNMoney.com) - The Sporting News, which is owned by investor Paul Allen, is up for sale, the company announced Tuesday, citing what it says is "unsolicited interest" in the nation's oldest sporting publication.
The statement from the St. Louis-based publication said it has hired Allen & Co., an investment banking firm not related to Paul Allen, for "evaluating strategic alternatives." It said the interest it has received is from "a range of strategic and financial parties."
Just last week The Sporting News announced it reached record ad revenue levels in 2005, with revenue in the final four months 25 percent ahead of the previous year and a Feb. 24 issue that will set a revenue record for the nearly 120-year-old publication.
But the weekly magazine continues to struggle with well-established, deep-pocket competition from Sports Illustrated, published by Time Warner (Research), and ESPN The Magazine, published by the magazine division of the Walt Disney Co. (Research)
CNNMoney.com is also a unit of Time Warner.
The Audit Bureau of Circulations reports that for the six months ending June 30, the most recent period available, Sports Illustrated had a circulation of 3.3 million, while ESPN The Magazine's circulation was 1.9 million. By comparison, The Sporting News was a distant third with circulation of 713,158.
The Sporting News was once the leading source of statistics craved by fans. But much of that information is now available online for free and on a more timely basis than possible in a weekly publication.
The publication was also hit by a federal investigation into charges that it promoted Internet gambling by taking advertisements from overseas online casinos. It reached a settlement last month under which it agreed to pay a $4.2 million fine and spend $3 million on a three-year public service campaign against Internet and telephone gambling.
Allen, a co-founder of Microsoft (Research), owns the NFL's Seattle Seahawks as well as the NBA's Portland Trail Blazers. He is listed as the third-richest American by Forbes magazine, with an estimated net worth of $22.5 billion. In addition to the weekly publication, The Sporting News' holdings include three radio stations, a sports radio network with 450 affiliates, and a book publishing unit.
The New York Times reports that Allen acquired The Sporting News from the Times Mirror Co. for more than $100 million six years ago. His investment company, Vulcan, has been quietly seeking buyers for The Sporting News for months, according to the Times' report.
Jay Kirsch of AdMedia Partners, an investment banking firm for media companies, told the Times he estimates that The Sporting News magazine is worth $35 million to $40 million. But the magazine's CEO, C. Richard Allen, who is no relation to Paul Allen, told the newspaper he expects the franchise to fetch "in the hundreds of millions" if it is sold.