ADVANCE PUBLICATIONS

• By Eric Clark

• And Scott Jarrett

Facts about S.I. Newhouse

• S.I. Newhouse is a billionaire art collector who served on the MoMA board or Museum of Modern Art in New York for twenty seven years until finally resigning last year.

• He has a school of communications named after him at Syracuse University where he gives out scholarships to students each year.

• As an art collector he is very influence by Picasso.• He is in charge of the magazine portion of the business, including

Conde Nast, Vogue, and The New Yorker.

Donald Newhouse

• At the age of 72 Donald Newhouse along with his brother were worth 7.7 Billion dollars a piece.

• Donald is in charge of all of the Newspapers that the company owns and their distribution.

• As of last year him and his brother were the 18th richest men in the U.S. behind people like Bill Gates and Michael Dell.

• Along with his brother he has been on the Forbes 400 list every year for more than two decades.

Over the past two decades, only 58 names haveappeared every year on the Forbes 400 list

• Marc Rich, Robert Prtizker, Ross Perot,• Si Newhouse, John Kluge, Marvin Davis,• Donald Newhouse, Kirk Kerkorian, Lester Crown,• David Murdock, Ray L. Hunt, Anne Chambers,• Roger Milliken, Henry Hillman, Barbara Anthony,• Patrick McGovern, Donald Hill, Helen Copley,• Cordelia Scaife, May Gordon, Getty Margaret Cargill• John Lupton, Edward Gaylord, Jim Cargill,• Carl Lindner, Charles Gates, Warren Buffet,• Samuel LeFrak, Robert Galvin, Donald Bren,• Ronald Lauder, Ernest Gallo, Steve Bechtel,• Leonard Lauder, William Clay Ford, Frank Batten,• David Koch, Max Fisher, Perry Bass,• Charles Koch, Ted Field, Walter Annenberg,• Philip Knight, Roy Disney, Herb Allen,

Partnership

Advanced Publications is a partnership owned by brothers S.I. and Donald Newhouse. They together

make all of the decisions for the company. If they want to start or buy out another periodical they only have to

answer to each other. The two brothers have the branches split, Donald is in charge of the newspapers they own and S.I. is in charge of the responsibilities for

the magazines.

Capital

With the addition of more than 1 billion dollars worth of additions in the last few years Advance has had to add more and more human resources, computer systems and purchasing, or capital. Media Consultant Michael Wolf was brought in to make changes and has made huge contributions to the company.

The Conde Nast headquarters is located

In New York City.

Profit Maximization

• Buying out all of the companies the Advance has bought out from Disney the New York Times and Primedia has been to sell them at lower prices and to maximize a higher profit.

Key Numbers

Company Type Private

                                            

Fiscal Year-End December

2002 Sales (mil.) $5,565.0 (est.)

1-Year Sales Growth 32.5% (est.)

2002 Employees 27,585

1-Year Employee Growth

21.1%

Firm’s supply curve

• The increase in the output of magazines has moved the firm’s supply curve up on the model which will raise the demand curve and increase profit to the company.

Dominant strategy

• Advance has used a dominant strategy in buying out so many periodicals. This strategy has allowed them to keep on increasing their profits no matter what their competitors do. It allows them to change their company no matter what.

Labor shortage

• Advance had a labor shortage because of the new acquisitions to the company that they made. They had to bring in new human resources in order to fill their gaps.

• Key fact: 21% growth in employment over the last year.

Sources

• www.yahoo.com• www.advance.com• www.condenast.com• www.hoovers.com• www.bizjournals.com