Mediaboss Marketing

American Media Inc. is trying to get its balance sheet in shape without Shape.

The struggling publisher on Wednesday sold the title and sister magazines Natural Health and Fit Pregnancy to Meredith Corp. for $60 million in cash, plus future profit-sharing, according to sources.

Shape cover

While AMIs balance sheet certainly could use the cash, the sale could turn out to be a win-win for CEO David Pecker, sources said.

The future profit-sharing over the next three years could reach as high as $60 million, sources said, which would double the deals value to $120 million.

Meredith s Shape rival, Fitness magazine, will fold its print edition and combine its subscriber list with Shape beginning with the May issue.

The combination will boost Shapes circulation rate base to 2.5 million from 1.6 million. The Web sites will continue under their own names.

Meanwhile, Fit Pregnancy and Natural Health will cease their print editions.

The acquisition of Shape establishes Meredith as the leader in the womens active lifestyle media category, said Tom Harty, head of the companys National Media Group.

Shape, whose readers have a median age of 39 and an average annual income of $89,000, will be a category killer, Meredith CEO Steve Lacy predicted in a conference call.

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American Media sells Shape, 2 others for $60M to Meredith