Light Reading Bought Out By CMP, For $27 Million

Light Reading, one of my favorite telecom news sources, has been bought by CMP Media, a subsidiary of UK-based United Business Media, for $27 million cash at closing.

CMP already has some strong publications in the telecom sector, and this will add to it. LR will become an autonomous business unit within CMP. Stephen Saunders, co-founder and CEO of Light Reading, remains President of Light Reading and becomes Senior VP of CMP’s newly formed Communications Group.

Light Reading is among the only trade media company I know of that has used humor and sarcasm in stories very effectively in otherwise boring topics in this industry. It has been profitable for five years, and across its several sites which include LightReading.com, ByteandSwitch.com, and Unstrung (a site it bought out in 2002).

Update: In 2004, Light Reading generated revenues of $10.1m and EBITDA of $2.6m, according to UBM. In addition to the initial price, today’s transaction includes a potential maximum earnout of up to $8m, subject to performance criteria over the next 2 years.

Related: Light Reading Thrives Online in Telecom Niche

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