Maxim Magazine Bought by Biglari Holdings, a Restaurant Holding Company

Biglari Holdings, a restaurant holding company that owns chains like Western Sizzlin’, has bought the racy magazine from Alpha Media Group on Thursday, February 27, 2014.

The restaurant holding company plans on keeping the current management team intact and headquartered in New York.  Exact terms were not disclosed to the public.

Chairman and CEO of Biglari Holdings, Sardar Biglari, said that this was a long term investment. He announced that the inclusion of the magazine in the company’s other holdings, such as Steak and Shake, will benefit the company’s overall financial strength. They have plans to build up the magazine and energize more readers and viewers.

The magazine seems to have been slowly declining over the past year. In this previous year, 2013, the company was almost bought by Darden Media Group, which planned on taking the magazine to television and radio. The deal fell through when Darden could not make up the funds in order to purchase the magazine.

According to recent statistics from the Publishers Information Bureau, print ad pages fell 17% at Maxim. In the overall industry, the decline was a much lower, 4.1%. The decline has put pressure on Alpha Media Group to sell off the magazine and salvage the value the magazine still obtains.

What do you think of this recent acquisition? Do you think a restaurant holding company has what it takes to turn the declination of the magazine around? What do you think needs to be done so that the magazine can restore earnings?  I think it seems a little out-of-place that a restaurant holding company is buying a men's entertainment magazine, but it will seem interesting what Biglari Holdings will do with the magazine. 

Comment below!