'Wired' OKs Sale To Conde Nast

Wired Ventures approved the sale Friday of its flagship magazine Wired to Conde Nast, publisher of Vanity Fair, GQ, and Vogue.

The sale figure wasn't disclosed, but published reports put the price tag for the cutting-edge magazine at $80 million.

Wired Ventures will retain the rights to Wired Digital properties including HotWired and Wired News, and the search engine HotBot.

Although Wired made a splash when it debuted in 1993, the company has struggled to control costs associated with its subsequent growth into the web and book publishing business. The company tried to go public twice in 1996 in deals that would have valued it as high as $450 million. Investors balked at those valuations, however.

A statement from Wired Ventures issued Friday morning said the company would use the proceeds of the sale to pay off short-term debt and fund its online businesses.

"Our online business has accounted for the greatest percentage of the company's overall revenue growth over the past two years," Wired co-founder Louis Rossetto said in a prepared statement.

"This transaction solidifies our financial position, provides ample funding for our online properties and positions the company for many possible opportunities going forward," he said.

Conde Nast's parent company Advance Publications, itself controlled by S.I. Newhouse, has held a stake in Wired since January, 1994. Both Wired Ventures and Advance are privately-held.

"We have long admired Wired for its innovative approach to publishing and its strong editorial voice," Newhouse said in a statement.

Wired Digital had $3.4 million in revenue in the first quarter of 1998, a 113% jump from the same quarter last year. It is expected to turn a profit by the end of the year.

Wired has twice won the prestigious National Magazine Award for General Excellence and once for Design. The magazine has made money for five consecutive quarters and has circulation of about 400,000.

By Steve Gelsi