NEW YORK (CNNfn) - Magazine publisher Primedia Inc. agreed Tuesday to acquire privately held Kagan World Media Inc., a leading media research and consulting firm, for an undisclosed sum in stock.|
The merger gives Primedia access to a wealth of consumer data tracking everything from radio and television to wireless telecommunications and streaming media. Kagan, founded in 1969 by media analyst and investor Paul Kagan, publishes 40 newsletters, 60 reference reports and 2 international trade magazines, in addition to hosting nearly two-dozen industry conferences each year.
It also accelerates an internal push by Primedia, best know for such magazines as Seventeen and Automobile, to take many of its products online. Kagan makes a majority of its databases and publications available online, extending its international reach.
Kagan, who has developed a loyal following of media executives and investors through the years, will remain with Primedia after the acquisition to oversee a broad range of Kagan operations. He also will remain a contributor to the company's many publications and moderate the firm's many conferences, and will serve as vice chairman of Primedia's venture capital investment arm.
"As someone who has spent a lifetime valuing media properties and selecting high-potential media investments, I feel very confident in placing our assets in the hands of Primedia," Kagan said. "The fact that we sold for stock rather than cash reflects my support for Primedia's leadership."
New York-based Primedia has been positioning itself to become a leading deliverer of Web content in recent months, including bringing in high-profile investors Liberty Media Group (LMG.A: Research, Estimates) and CMGI (CMGI: Research, Estimates) earlier this year.
Primedia (PRM: Research, Estimates) shares rose 31 cents to $15.69 in mid-afternoon trading.