American Media, Inc.

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American Media, Inc.
Private
IndustryMedia
Founded1936
HeadquartersNew York City[1]
Key people
David J. Pecker, CEO
Roger Altman
ProductsNewspapers
Magazines
OwnerChatham Asset Management, LLC
Omega Charitable Partnership, L.P.
Number of employees
3,160 (2006)
WebsiteAmericanMediaInc.com

American Media, Inc. (A.M.I.), is an American publisher of magazines, supermarket tabloids, and books based in New York City. On December 12, 2018, the U.S. Attorney's Office reported that A.M.I. admitted to paying $150,000 to Karen McDougal in concert with a candidate's presidential campaign for the sole purpose of preventing damaging allegations prior to the 2016 election for President of the United States.[2][3]

History[edit]

The modern American Media came into being after Generoso Pope, Jr., longtime owner of the National Enquirer, died in 1988, and his tabloids came under new ownership. American tabloids began consolidating in 1990, when American Media bought Star from Rupert Murdoch. The purchase of Globe Communications (owner of the Globe and the National Examiner) followed nine years later.[4] Roger Altman, through Evercore Partners, bought a controlling stake in American Media in 1999.[5]

American Media is not to be confused with American Media Distribution the international news coverage firm. American Media's former corporate headquarters in Boca Raton, Florida, figured prominently in news headlines in late 2001, after an anthrax attack was perpetrated on the company[6] and other media outlets.[7] Since then the corporate headquarters have moved to New York City at 1 Park Avenue in Manhattan, before moving to the Financial District to the former JP Morgan Chase headquarters at 4 New York Plaza. That building was severely damaged by Hurricane Sandy but reopened in February 2013. The CEO, David J. Pecker, travels between the Boca Raton and New York offices while managing the company.[citation needed]

AMI continued to expand after it bought Joe Weider's Weider Publications in 2002. Joe Weider continued to manage control of his magazines under AMI's Weider Publications subsidiary until his death in March 2013.[8][9]

American Media also owns Distribution Services, an in-store magazine merchandising company. In fall 2002, it launched the book-publishing imprint, AMI Books.[10]

In 2009, American Media was taken over by its bondholders to keep it out of bankruptcy.[citation needed]

In November 2010, American Media filed for Chapter 11 bankruptcy protection due to nearly $1 billion in debt, and assets of less than $50,000.[11] Its subsidiary, American Media Operations Inc., listed assets of $100 to $500 million and debt of over $1 billion.[12] It exited in December.

In May 2014, American Media announced a decision to shift the headquarters of the National Enquirer from Florida, where it had been located since 1971, back to New York City, where it originally began as The New York Enquirer in 1926.[13] In August 2014, American Media was acquired by Chatham Asset Management and Omega Charitable Partnership.[14]

In 2015, American Media sold Shape, Natural Health, and Fit Pregnancy to Meredith.[15]

In March 2017, American Media acquired US Weekly from Wenner Media for a reported $100 million.[16] Three months later, in June 2017, American Media also acquired Men's Journal from Wenner Media.[17]

In June 2018, American Media acquired 13 brands from Bauer Media Group including In Touch Weekly, Life & Style (magazine) and Closer (magazine) to add to their celebrity portfolio. They also acquired Bauer Media's kids group including J-14 (magazine) and Girl's World.[18]

"Catch-and-kill" scandals related to Donald Trump[edit]

In late 2015, AMI paid $30,000 to Dino Sajudin, a doorman at Trump Tower, to obtain the rights to his story in which he alleged Donald Trump had an affair in the 1980s that resulted in the birth of a child. Sajudin in April 2018 identified the woman as Trump's former housekeeper.[19] AMI reporters were given the names of the woman and the alleged child, while Sajudin passed a lie detector test when testifying that he had heard the story from others. Shortly after the payment was made, Pecker ordered the reporters to drop the story.[20] In April 2018, AMI chief content officer Dylan Howard denied the story was “spiked” in a so-called “catch and kill” operation, insisting that AMI did not run the story because Sajudin‘s story lacked credibility.[21] On August 24, 2018, after AMI had released Sajudin from the contract, CNN obtained a copy of it and published excerpts. The contract instructed Sajudin to provide "information regarding Donald Trump's illegitimate child," but did not contain further specifics of Sajudin's story.[22]

Karen McDougal[edit]

American Media Inc. Non-Prosecution Agreement
American Media Inc. Non-Prosecution Agreement

In 2016, AMI paid Playboy model Karen McDougal $150,000 for exclusive rights to her allegations of a ten-month affair with Donald Trump—which she claimed happened in 2006-2007, while he was married to Melania[23]—but A.M.I. never published the story. A.M.I. publicly acknowledged having made the payment after the Wall Street Journal revealed it days before the 2016 presidential election, but A.M.I. denied that its purpose had been to "kill damaging stories about" Trump; instead, A.M.I. claimed it had paid only for "exclusive life rights to any relationship [McDougal] has had with a then-married man" and "two years’ worth of her fitness columns and magazine covers."[24][25] In March 2018, McDougal filed a lawsuit to invalidate the non-disclosure agreement she had with AMI.[26][27] A month later, A.M.I. settled with McDougal, allowing her to speak about the alleged affair.[28] In August 2018, it was reported that A.M.I. CEO/Chairman David Pecker and AMI chief content officer Dylan Howard were granted witness immunity in exchange for their testimony regarding hush money payments made by Donald Trump's then-personal lawyer, Michael Cohen, in an attempt to influence the 2016 presidential election.[29]

On December 12, 2018, the U.S. Attorney’s Office announced its agreement with A.M.I. "AMI admitted that it made the $150,000 payment in concert with a candidate’s presidential campaign," the press release said, so that Karen McDougal wouldn't "publicize damaging allegations about the candidate before the 2016 presidential election. AMI further admitted that its principal purpose in making the payment was to suppress the woman’s story so as to prevent it from influencing the election." As a result of this agreement, A.M.I. would not face prosecution and agreed to provide extensive assistance to prosecutors about the involvement of Trump and other politicians with the company.[2] The same press release also revealed that Michael Cohen had been sentenced to three years in prison for various crimes, including the $150,000 campaign finance violation—the facilitation of the payment to McDougal—to which he pled guilty on August 21, 2018.[30][31][32]


Publications[edit]

Divisions[edit]

  • Distribution Services, Inc.
  • AMI Books
  • AMI Entertainment Group[33][34]

See also[edit]

References[edit]

  1. ^ [1] Accessed June 30, 2017.
  2. ^ a b Samuelsohn, Darren. "A 'loud gong': National Enquirer's surprise deal could imperil Trump". POLITICO. Retrieved 13 December 2018.
  3. ^ McIntire, Mike; Savage, Charlie; Rutenberg, Jim (2018-12-12). "Tabloid Publisher's Deal in Hush-Money Inquiry Adds to Trump's Danger". The New York Times. ISSN 0362-4331. Retrieved 2018-12-13.
  4. ^ Kuczynski, Alex (1999-11-02). "THE MEDIA BUSINESS; Leading Tabloid Publisher to Buy a Big Competitor". The New York Times. ISSN 0362-4331. Retrieved 2018-12-10.
  5. ^ Smith, Ben (October 11, 2007). "The Clintonite who owns National Enquirer". The Politico newspaper. Arlington County, Virginia: Politico. Retrieved July 9, 2016.
  6. ^ Canedy, Dana (August 27, 2002). "Traces of Terror: The Bioterror; F.B.I to Re-enter Building Long After Anthrax Shut It". The New York Times. Retrieved March 29, 2018.
  7. ^ "Timeline: How the Anthrax Terror Unfolded". NPR. February 15, 2011. Retrieved March 29, 2018.
  8. ^ "Joe Weider Legendary Bodybuilding and Fitness Icon Dies at 93". MarketWatch. Retrieved March 24, 2013.
  9. ^ Trounson, Rebecca. "Joe Weider dies at 93; bodybuilding pioneer and publisher". latimes.com. Retrieved March 24, 2013.
  10. ^ Milliot, Jim (August 4, 2003). "American Media to Expand Book Program". Publishers Weekly. United States: PWxyz LLC. 250 (31). Archived from the original on March 1, 2012. Retrieved July 9, 2016.
  11. ^ "American Media Chapter 11 Voluntary Petition" (PDF). Pacer. San Antonio: Federal judiciary of the United States. November 17, 2010. Retrieved May 16, 2016.
  12. ^ Jeffrey, Don; Milford, Phil (November 17, 2010). "'National Enquirer' Publisher Files for Chapter 11". Bloomberg Businessweek. New York City: Bloomberg L.P. Retrieved July 9, 2016.
  13. ^ The Associated Press (May 21, 2014). "National Enquirer leaving Florida headquarters". The Record. Woodland Park, New Jersey: North Jersey Media Group. Retrieved July 9, 2016.
  14. ^ Inc, American Media. "Chatham Asset Management and Omega Charitable Partnership to Acquire American Media, Inc". www.prnewswire.com. Retrieved 13 December 2018.
  15. ^ Mickey, Bill (January 28, 2015). "Meredith Buys Shape From AMI for $60 Million". foliomag.com. Washington, D.C.
  16. ^ Ember, Sydney (March 15, 2017). "Us Weekly Is Sold to National Enquirer Publisher". The New York Times. New York City. Retrieved March 15, 2017.
  17. ^ "American Media Buys Wenner's 'Men's Journal' To Attract Premium Advertisers". www.mediapost.com. Retrieved 2017-06-26.
  18. ^ "American Media, Inc. Acquires Celebrity And Kids Group Titles From Bauer Media USA". CBS8. 2018-06-15. Retrieved 2018-06-25.
  19. ^ Moghe, Chris Isidore, Tom Kludt and Sonia. "Former doorman involved in story of alleged Trump affair speaks". Retrieved 25 August 2018.
  20. ^ Farrow, Ronan (2018-04-12). "The National Enquirer, a Trump Rumor, and Another Secret Payment to Buy Silence". The New Yorker. ISSN 0028-792X. Retrieved 2018-04-12.
  21. ^ "$30,000 rumor? Tabloid paid for, spiked, salacious Trump tip". Retrieved 25 August 2018.
  22. ^ CNN, Sonia Moghe,. "Ex-Trump World Tower doorman releases 'catch-and-kill' contract about alleged Trump affair". Retrieved 25 August 2018.
  23. ^ Rutenberg, Jim (2018-03-22). "Ex-Playboy Model Karen McDougal Details 10-Month Affair With Donald Trump". The New York Times. ISSN 0362-4331. Retrieved 2018-12-12.
  24. ^ Palazzolo, Joe; Rothfeld, Michael; Alpert, Lukas (November 4, 2016). "National Enquirer Shielded Donald Trump From Playboy Model's Affair Allegation". The Wall Street Journal. Retrieved February 17, 2018.
  25. ^ Weprin, Alex (November 4, 2016). "Report: National Enquirer bought rights to Trump affair story, but never published". Politico.
  26. ^ "Karen McDougal v. American Media, Inc" (PDF).
  27. ^ Rutenberg, Jim (2018-03-20). "Former Playboy Model Karen McDougal Sues to Break Silence on Trump". The New York Times. ISSN 0362-4331. Retrieved 2018-03-20.
  28. ^ Rutenberg, Jim (2018-04-18). "Ex-Playboy Model, Freed From Contract, Can Discuss Alleged Trump Affair". The New York Times. ISSN 0362-4331. Retrieved 2018-04-19.
  29. ^ Sherman, Gabriel. ""Holy shit, I thought Pecker would be the last one to turn": Trump's National Enquirer allies are the latest to defect". Vanity Fair. Retrieved 25 August 2018.
  30. ^ "Michael Cohen Sentenced To 3 Years In Prison". www.justice.gov. 2018-12-12. Retrieved 2018-12-12.
  31. ^ "Michael Cohen trial: Trump accused of directing hush money". BBC News. Retrieved 22 August 2018.
  32. ^ "Ex-Trump lawyer Michael Cohen pleads guilty, implicates president". Al Jazeera. Retrieved 22 August 2018.
  33. ^ Silber, Tony. "American Media Acquires Bauer Media's Celebrity And Teen Brands". Forbes. Retrieved 2018-10-18.
  34. ^ "Entertainment Group | American Media Inc". www.americanmediainc.com. Retrieved 2018-10-18.

External links[edit]