Despite its success in the United Kingdom, the U.S. edition of OK! is believed to have lost almost US$25 million last year. Its UK publisher has taken some big losses on it since its U.S. launch in 2005, as it competed with more established titles like People and Us Weekly. AMI, meanwhile, filed for bankruptcy in November last year.
So how is this a good idea?
AMI is banking on OK! and its own Star magazine being stronger together than they are apart. Their combined circulation is about 1.7 million, slightly less than Wenner Media’s Us Weekly, which has a circulation of almost 2 million, according to the Audit Bureau of Circulations, the Wall Street Journal reported yesterday. AMI also already has the infrastructure to add an additional title.
AMI is believed to have paid between $10 million and $15 million for OK!, a source told Adweek.