Condé Nast and Hearst Magazines have announced the formation of PubWorx, a new, independent company that will manage production, procurement and circulation management for both publishers, and offer custom programmes across the industry.
Al Perruzza, most recently executive vice president, business operations at Reader’s Digest, has been appointed president and CEO of PubWorx, and will report to a board comprised of executives from Condé Nast and Hearst Magazines. The announcement was made by David Carey, president of Hearst Magazines, and Bob Sauerberg, president and chief executive officer of Condé Nast.
PubWorx, a 50/50 joint venture, will incorporate staff and back-office functions from Condé Nast and Hearst Magazines, and will offer third-party companies a range of products and services, including procurement, production, and full-service, end-to-end circulation management operations.
“PubWorx is an innovative new company that combines the commitment to excellence and publishing expertise of both Condé Nast and Hearst, and offers it to third-party companies for the first time,” Sauerberg said. “Having the two parent companies as its first clients sets PubWorx up for success and we are looking forward to the new company developing untapped business opportunities with its unique position in the market.”
“We’re thrilled to continue building our business relationship with Condé Nast,” Carey said. “In addition to serving Hearst and Condé Nast, Pubworx will provide important, turn-key infrastructure for the industry, allowing publishers to access the scale of our two companies for production and circulation functions, freeing them to concentrate on innovation, content creation and advertising revenue.”
PubWorx is the latest instance of Hearst and Condé Nast working together; the two publishers formed Comag, a marketing and retail distribution company, nearly 40 years ago. Comag US was sold in 2012; Hearst and Condé Nast continue to own and operate the business together in the UK. In addition, Hearst Newspapers and Advance Publications, parent company of Condé Nast, have worked together on procurement for many years.
Condé Nast and Hearst are FIPP member companies.