Convoy of top motoring titles heads south as Bauer continues overhaul
Bauer Media's chief executive Matthew Stanton informed staff on Tuesday that seven of the country's most popular motoring titles would be relocated from their Goulburn Street offices in Sydney's central business district to its Trader Media Group branch in the Melbourne suburb of Oakleigh within the next two months.
One source indicated Bauer was packaging the motoring titles within the Trader group to boost its position before a potential sale.
The move is headlined by the relocation of its flagship automotive publication Wheels, which has been based in Sydney since its inception 60 years ago.
It will be joined by performance car title Motor, modified car magazine Street Machine, off-road title 4x4 Australia, weekly motor-racing newspaper Auto Action and motorcycle magazines Australian Motorcycle News and Australian Dirt Bike.
Germany's Bauer acquired Australia's largest magazine publisher, ACP, from Nine Entertainment last year.
It has already set about overhauling the magazine portfolio, which includes popular titles such as Australian Women's Weekly.
The move will also lead to the titles being managed directly by Bauer Trader Group, which produces classified-based publications such as Unique Cars, Trade-a-Boat and Motorcycle Trader.
The only motoring title that will remain directly under the Bauer Media umbrella - and will not relocate to Melbourne - is Top Gear Australia, which is a joint-venture operation between Bauer and the BBC.
Fairfax Media understands that all staff - believed to be upwards of 35 - have been offered the opportunity to relocate to Melbourne or take a severance package.
Affected staff have been given a week to decide which option to take.
However, the relocation is likely to result in significant attrition rates with most staff members entrenched in Sydney with family.
It is understood Bauer has no plans to close any of the seven titles and the move is designed to reduce the costly overheads of inner-city office space.
But there are seemingly no guarantees, with reports that Bauer sold Australian Mountain Bike magazine to Next Media last week.
Frequently Asked Questions about this Article…
The article says Bauer is moving seven motoring titles from its Sydney Goulburn Street offices to its Trader Media Group branch in Oakleigh, Melbourne: Wheels, Motor, Street Machine, 4x4 Australia, Auto Action, Australian Motorcycle News and Australian Dirt Bike.
According to the article, the relocation is intended to cut the costly overheads of inner-city Sydney office space and to have the titles managed directly by Bauer Trader Media Group. A source also indicated Bauer may be packaging the motoring titles within the Trader group to strengthen its position ahead of a potential sale.
Yes. Top Gear Australia will remain directly under the Bauer Media umbrella and will not relocate to Melbourne — it operates as a joint venture between Bauer and the BBC.
The titles will be managed by Bauer Trader Media Group in Oakleigh, the part of Bauer that produces classified-based publications such as Unique Cars, Trade-a-Boat and Motorcycle Trader, per the article.
The article states Bauer has no plans to close any of the seven titles and that the move is designed to reduce overheads. However, it also notes there are seemingly no guarantees, given recent portfolio changes in the business.
Fairfax Media understands all staff — believed to be upwards of 35 people — have been offered the option to relocate to Melbourne or accept a severance package. Affected staff were reportedly given one week to decide, and the move is expected to cause significant attrition because many employees are based in Sydney with family ties.
The move follows Germany’s Bauer acquiring Australia’s largest magazine publisher, ACP, from Nine Entertainment last year and launching an overhaul of the magazine portfolio (including titles such as Australian Women’s Weekly). The article also notes Bauer recently sold Australian Mountain Bike magazine to Next Media.
Based on the article, everyday investors might monitor signs that Bauer is streamlining operations, reducing overheads and potentially preparing assets for sale. Watch for further portfolio sales, changes in management under Trader Media Group, and any announcements about title closures or transactions, all of which could affect publisher valuations and revenue profiles.
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