Variety Sold for $25 MIllion to Penske Media Corp.

A big deal was made in Hollywood as Variety was bought this week by Penske Media Corporation.

The acquisition was announced on Tuesday in a press release by Penske Media Corp. who also owns Deadline Hollywood, HollywoodLife.com and other entertainment websites.

There have been no details released about the deal and hints as to any changes to Variety's continued operations.

"We are enthusiastic that PMC will become the new steward of the great Variety franchise," said Neil Stiles, President of Variety. He added, "PMC is uniquely positioned to preserve and build the market presence of Variety.  Their shared values and complementary assets provides for many new opportunities for the business model and brand."

Variety is an entertainment news trade publication that was established over a hundred years ago. First launched by Sime Silverman in 1905, the daily publication made its name covering the ins-and-outs of the entertainment industry. However, Variety was struggling in recent years to adapt to the changing digital news media that has affected other daily papers.

Reed Business Information passed ownership of the publication for an estimated $25 million to PMC and the private equity firm Third Point LLC.

"Variety is an iconic title serving the film and entertainment industry for more than 100 years," said Mark Kelsey, CEO of Reed Business Information. He continued: "With RBI's increasing focus on data services, it makes sense for us to sell the Variety business. Variety has an incredibly talented team who have successfully innovated and expanded the franchise in industry news and analysis. I have no doubt the business will continue to thrive under PMC's ownership."

PMC is known for their digital news format and will likely incorporate that for the future of Variety.