Penske Media Corp. has purchased Variety, the entertainment news business of Reed Elsevier Group plc, for $25 million, reportedly.
Variety had operated within Reed Elsevier’s business information division, which owns companies Elsevier, Lexis Nexis Risk Solutions, Lexis Nexis Legal & Professional and Reed Exhibitions.
The deal, announced Oct. 9, brings one of Hollywood’s most recognized publications under the same umbrella as blog sites Deadline, Hollywood Life and India.com. Variety was originally founded as a newspaper that reported on vaudeville performers in 1905, and went on to cover film and television production.
Debt and equity financing was provided by affiliates of hedge fund Third Point LLC.
Morgan Lewis was Reed Elsevier’s legal counsel for the deal.