Many of the traditional print publications owned by publishing companies have been around for decades. With the meteoric growth of the internet and resulting drop in traditional print magazine revenues many of the old print publications are struggling.
Ziff Davis Media is just such a company founded in the 1920’s by the company namesakes that finds itself in financial trouble as a result of dropping circulation and ad sales numbers. According to the Associated Press (AP), Ziff Davis Media filed for Chapter 11 bankruptcy protection yesterday in the Southern district federal bankruptcy court in New York.
According to the AP Ziff Davis Media expects to reorganize and exit Chapter 11 protection by the middle of summer 2008. CEO of Ziff Davis, Jason Young told the AP, “We feel like we're in a position poised for wonderful growth. We just needed to solve this issue."
The Chapter 11 court filings show that Ziff Davis Media has about $500 million in liabilities and $313 million in assets. The creditors listed by the company total between 1,000 and 5,000 according to documents.
Ziff Davis reached an agreement with its senior creditors where they will be owed $57.5 million and at least 88.8% of the company’s common stock. Ziff Davis was unable to come to terms with its junior creditors. The company doesn’t foresee any job losses for its 266 employees.
Ziff Davis owns popular technology publications including PC Magazine and Electronic Gaming Monthly.