Conde Nast's Portfolio Says, "Aurevoire"

On April 27^th Condé Nast Publications Inc. announced the closing of one of its magazines - Portfolio - after only two years. The Wall Street Journal noted that it "absorbed nearly two decades of losses at the New Yorker," another of its well-regarded publications, without shutting it down. The company's other magazines include Architectural Digest, GQ, Vanity Fair, and Vogue. The May 2009 issue of Portfolio, which features Treasury Secretary Tim Geithner on the cover, is its last. Most recently, it was publishing ten issues per year.

The reason for the closure is the drying up of advertising revenue due to the economic recession, as well as competition from the Internet. According to Newsweek, it is one of over one-hundred and forty magazines to be shuttered so far this year. The decision to fold Portfolio came from Si Newhouse, who is the Chairman and CEO of Advance Publications Inc., which is Condé Nast's parent company. (Advance is not publicly traded.) According to the Journal, Newhouse personally broke the news to Joanne Lipman, Portfolio's managing editor, on April 27^th saying that he loved the magazine, but had not choice given the economic environment. (Si Newhouse Sr. - his father - founded Advance.) Lipman will be laid off, as will its publisher William Li. (As a publisher Li was responsible for all stages in the production of Portfolio, including copyediting, graphic design, printing, marketing, and distribution.)

This business magazine, which launched its premier issue in May 2007, featured excellent contributors. These included John Cassidy, Claire Hoffman, Michael Lewis, Betsy Morris, Gary Weiss, and Tom Wolfe. Lewis, who related his experiences as a Salomon Brothers bond salesman in his novel Liar's Poker, was a frequent contributor. Wolfe, who penned The Bonfire of the Vanities, wrote about the "New Masters" - the hedge fund and private equity managers - in the premier issue.

Lipman, the managing editor, stated in the premier issue, "Business is about power. And guts. And passion. Business coverage should be too." Portfolio proved itself and fulfilled that challenge over the last two years. It was her father that got her interested in journalism. He introduced her to the Wall Street Journal, where she spent twenty-two years as a journalist and editor. She created the Journal's "Weekend Journal" section, which still appears each Friday. (In 2005, the paper received a Pulitzer Prize for "Weekend Journal" coverage.) In October 2005 she left the Journal, having attained the title of Deputy Managing Editor. "Business has captivated me since I was a kid," she said. Sadly, her father passed away as the premier issue went to press. In an interview with Newsweek, after the magazine's closing, she said, "Portfolio's DNA was to be smart, substantive and sexy. Journalistically, we achieved what we set out to do." What's ahead for Lipman? "A vacation," she said.

Tina Brown, the publisher of thedailybeast.com, in a piece posted the day of the announced closing, said that "the closing of Condé Nast's smart business glossy Portfolio is a terrible loss for the media business. Portfolio had the potential not only to help us understand the complex issues of the volatile economy but help police the business world and keep (or make) it honest."

Aurevoire, notre bon magazine et ami!

Attention Subscribers: Condé Nast is expected to provide subscribers with either a refund or a rollover of their balance into another of their publications. A detailed announcement is expected soon. For those with questions, you may call 1-800-967-2081.

Sources:

Tina Brown, "The Quake at Condé Nast," thedailybeast.com, April 27, 2009.

http://www.thedailybeast.com/blogs-and-stories/2009-04-27/the-quake-at-condeacute-nast/full/

Russell Adams and Shira Ovide, "Condé Nast Shuts Down Portfolio," The Wall Street Journal," page B8, April 28, 2009.

Johnnie L. Roberts, "What Went Wrong," Newsweek, May 1, 2009.

http://www.newsweek.com/id/195606