Ziff Davis files for Chapter 11

MattKeil · 03-05-2008, 02:02 PM

http://www.foliomag.com/2008/breakin...les-chapter-11

For those wondering why the EGMs keep getting thinner...there you go.

Sounds like it's under control, really. Hopefully there aren't layoffs accompanying this.

stusser · 03-05-2008, 02:04 PM

Not exactly a surprise, but still disheartening. Good luck guys.

mittens · 03-05-2008, 02:08 PM

That sounds like the most optimistic bankruptcy-filing I've ever heard. It doesn't really sound like anything is changing over the next few months.

stusser · 03-05-2008, 02:10 PM

"As part of the restructuring, the publisher intends to implement a reorganization soon" means that the streets will run red with blood.

JD · 03-05-2008, 02:14 PM

Crap. GFW is one of my favourite magazines. Good luck, Jeff et al... :(

-Julian

Slainte Mhath · 03-05-2008, 02:15 PM

Long term debt of $400 million? No more free Vault and Doritos for the GFW crew!

Seriously though, I hope this doesn't effect the GFW (and EGM) guys too much. Since the demise of CGM they're my last bastion of sanity in gaming journalism. Plus, what would I read on the can? Think of the children!!!

DavidKaye · 03-05-2008, 02:17 PM

That sucks. Hope Jeff and company make it through okay.

Dirt · 03-05-2008, 02:18 PM

Haven't the majority of publications seen a steep decline in advertising sales?

Troy S Goodfellow · 03-05-2008, 02:19 PM

Don't like the sound of "reorganization", but I hope this doesn't mean anything more drastic for the game properties than Green's helicopter allowance being scaled back.

Troy

Gunmetal · 03-05-2008, 02:36 PM

That sucks :( I enjoy the 1up network game coverage, and I think the ZD gaming podcasts are the best out there. I hope things work out okay for everyone involved

Jeff Green · 03-05-2008, 02:40 PM

Thanks for the words, kids. So far....it's just kinda "business as usual" here, which was their message to us. In the big picture scheme of things, from what I understand (and any amateur or professional economist types, feel free to chime in) a Chapter 11 *can* be a good thing, and is not to be confused with the much-worse Chapter 7, which is a liquidation. I think in this case, we've had our big-ass debt reduced, with the bulk of it transferred into "equity". So I guess it means that the people we formerly owed all that money to now just own us instead. The theory is now that that has happened, they will be incentivized to *invest* money.

In the short run, as far as I know? No layoffs, no scale-backs, no change in mags or podcasts. But who knows. As long as I get to keep my helicopter, I'm good.

Jon Rowe · 03-05-2008, 02:44 PM

Good to hear it isn't too bad, and good luck guys. I just subscribed to EGM and GFW this year, so I am contributing as much as I can.

Keep us posted!

stusser · 03-05-2008, 02:45 PM

Sounds about right, but new owners generally shake things up a bit with the belief that if they were managed properly their new properties wouldn't be in the crapper in the first place. Good luck to all of you.

Jeff Green · 03-05-2008, 02:48 PM

Quote:

Originally Posted by stusser

Sounds about right, but new owners generally shake things up a bit with the belief that if they were managed properly their new properties wouldn't be in the crapper in the first place. Good luck to all of you.

Right--exactly. That's why I am assembling a portfolio of all my high-scoring reviews for major publishers so they realize what an asset I am.

Aszurom · 03-05-2008, 02:50 PM

Do you have one of those Encom helicopters with the red neon trim? And a talking desk?

Dave Long · 03-05-2008, 02:52 PM

Only if he stole someone's game code and sold it as his own creation!

Jon Rowe · 03-05-2008, 02:56 PM

So, I traveled to the GAF expecting the thread about this to be full of 1up sucks banter, but that was not the case. Looks like you got some sort of support.

You must bring back Cat Fancy.

forgeforsaken · 03-05-2008, 03:00 PM

Quote:

Originally Posted by Jon_Danger

So, I traveled to the GAF expecting the thread about this to be full of 1up sucks banter, but that was not the case. Looks like you got some sort of support.

Why would you think that? GAF is full of 1up fanboys if anything.

Lorini · 03-05-2008, 03:06 PM

Um let's not forget about our friends Case and Jason Cross. They could be affected by this as well. Hope not though, they are great on extremetech.

Joel · 03-05-2008, 03:14 PM

This has been in the cards for ages, so I'm sort of glad that something is happening. Hopefully it'll help put everything back on track. There are many ZD outlets I really enjoy.

MikeSolita · 03-05-2008, 03:32 PM

It's a credit to the ZD/1UP staff their network is as good as it is, assuming you're probably not getting much investment from a company shackled with a $400 million debt.

I hope things work out. EGM and GFW are two of my favorite magazines. :(

Post-It · 03-05-2008, 03:54 PM

Hope it works out for everyone involved.

Case · 03-05-2008, 03:56 PM

I can confirm what Jeff said. It's business as usual, and is a debt restructuring. Beyond that, we can't say much (mostly because we don't know much.) Jason, Joel Durham and I are still on the job.

Supertanker · 03-05-2008, 03:57 PM

My best wishes for all of you, as well. In addition to maintaining my GFW subscription since time began & reading 1UP/ExtremeTech, I have come to love your podcasts. Hopefully those won't take too big of a hit in any cost reductions.

Jon Shafer · 03-05-2008, 04:03 PM

Cripes... how (long) does (it take) a magazine publisher (to) build up a billion dollars in debt!? :o

Jon

Alan Au · 03-05-2008, 04:10 PM

Yikes! I hope the folks at ZD are okay. :(

- Alan

Case · 03-05-2008, 04:17 PM

Quote:

Originally Posted by Jon Shafer

Cripes... how (long) does (it take) a magazine publisher (to) build up a billion dollars in debt!? :o

Jon

Buy me a beer sometime, and I'll tell you the long, sad story of buying, transferring debt, and selling.

Kunikos · 03-05-2008, 04:19 PM

The reason I read GFW is for exclusive previews and timely reviews, but honestly all of the other stuff I can either get from an online site (Gamespot) weeks earlier, more rapid coverage of news from blog sites (Joystiq), or lively discussion from QT3. I'm assuming that exclusives will transfer elsewhere if print mags go away.

Jon Shafer · 03-05-2008, 04:28 PM

Quote:

Originally Posted by Case

Buy me a beer sometime, and I'll tell you the long, sad story of buying, transferring debt, and selling.

Seems like a lot of work to build up a billion dollar debt. Which of course makes it all the more painful for everyone working underneath them.

Best of luck to all those affected by this. Nothing sucks more than doing a good job and being rewarded with being handed a box full of your things.

Jon

Qessinge · 03-05-2008, 04:30 PM

Chapter 11 can have a positive outcome, I'm not familar with ZD's detailed financial situation, but the company has had shrinking revenue and seems to have always had a boatload of debt dating back to the 90's.

Airlines have a history of regularly filing for Ch. 11, in fact United was recently in Ch. 11 for several years. A ton of mortgage companies have also recently filed, and Sharper Image just filed Ch. 11 last month.

It seems the game group has stood out as a source of growth and that is a great sign for that team... keep up the good work guys.

03-05-2008, 02:02 PM	#1
MattKeil How To Go Join Date: Jan 2003 Location: Los Angeles, CA Posts: 10,467	Ziff Davis files for Chapter 11 http://www.foliomag.com/2008/breakin...les-chapter-11 For those wondering why the EGMs keep getting thinner...there you go. Sounds like it's under control, really. Hopefully there aren't layoffs accompanying this.

03-05-2008, 02:04 PM	#2
stusser New Romantic Join Date: Jan 2004 Posts: 8,815	Not exactly a surprise, but still disheartening. Good luck guys.

03-05-2008, 02:08 PM	#3
mittens Broad Band Join Date: Nov 2007 Location: Austin, Texas Posts: 196	That sounds like the most optimistic bankruptcy-filing I've ever heard. It doesn't really sound like anything is changing over the next few months.

03-05-2008, 02:10 PM	#4
stusser New Romantic Join Date: Jan 2004 Posts: 8,815	"As part of the restructuring, the publisher intends to implement a reorganization soon" means that the streets will run red with blood.

03-05-2008, 02:14 PM	#5
JD Social Worker Join Date: Apr 2003 Location: Berlin Posts: 3,629	Crap. GFW is one of my favourite magazines. Good luck, Jeff et al... :( -Julian

03-05-2008, 02:15 PM	#6
Slainte Mhath Social Worker Join Date: Apr 2006 Location: Cincinnati, OH Posts: 4,507	Long term debt of $400 million? No more free Vault and Doritos for the GFW crew! Seriously though, I hope this doesn't effect the GFW (and EGM) guys too much. Since the demise of CGM they're my last bastion of sanity in gaming journalism. Plus, what would I read on the can? Think of the children!!!

03-05-2008, 02:17 PM	#7
DavidKaye Neo Acoustic Join Date: Dec 2006 Location: West Hollywood, CA Gamertag: DaedalusForever Posts: 1,907	That sucks. Hope Jeff and company make it through okay.

03-05-2008, 02:18 PM	#8
Dirt New Romantic Join Date: Jun 2002 Posts: 9,392	Haven't the majority of publications seen a steep decline in advertising sales?

03-05-2008, 02:19 PM	#9
Troy S Goodfellow New Romantic Join Date: Jun 2002 Location: Maryland Posts: 6,082	Don't like the sound of "reorganization", but I hope this doesn't mean anything more drastic for the game properties than Green's helicopter allowance being scaled back. Troy

03-05-2008, 02:36 PM	#10
Gunmetal Social Worker Join Date: Jan 2003 Location: Ontario, Canada Posts: 2,541	That sucks :( I enjoy the 1up network game coverage, and I think the ZD gaming podcasts are the best out there. I hope things work out okay for everyone involved

03-05-2008, 02:40 PM	#11
Jeff Green Social Worker Join Date: Sep 2002 Posts: 2,059	Thanks for the words, kids. So far....it's just kinda "business as usual" here, which was their message to us. In the big picture scheme of things, from what I understand (and any amateur or professional economist types, feel free to chime in) a Chapter 11 can be a good thing, and is not to be confused with the much-worse Chapter 7, which is a liquidation. I think in this case, we've had our big-ass debt reduced, with the bulk of it transferred into "equity". So I guess it means that the people we formerly owed all that money to now just own us instead. The theory is now that that has happened, they will be incentivized to invest money. In the short run, as far as I know? No layoffs, no scale-backs, no change in mags or podcasts. But who knows. As long as I get to keep my helicopter, I'm good.

03-05-2008, 02:44 PM	#12
Jon Rowe New Romantic Join Date: Nov 2007 Location: Madison, WI Gamertag: Dr JonDanger Steam: Jon_Danger Posts: 7,437	Good to hear it isn't too bad, and good luck guys. I just subscribed to EGM and GFW this year, so I am contributing as much as I can. Keep us posted!

03-05-2008, 02:45 PM	#13
stusser New Romantic Join Date: Jan 2004 Posts: 8,815	Sounds about right, but new owners generally shake things up a bit with the belief that if they were managed properly their new properties wouldn't be in the crapper in the first place. Good luck to all of you.

03-05-2008, 02:50 PM	#15
Aszurom Social Worker Join Date: Jun 2002 Posts: 3,541	Do you have one of those Encom helicopters with the red neon trim? And a talking desk?

03-05-2008, 02:52 PM	#16
Dave Long How To Go Join Date: Jun 2002 Location: Reading, PA Posts: 14,204	Only if he stole someone's game code and sold it as his own creation!

03-05-2008, 02:56 PM	#17
Jon Rowe New Romantic Join Date: Nov 2007 Location: Madison, WI Gamertag: Dr JonDanger Steam: Jon_Danger Posts: 7,437	So, I traveled to the GAF expecting the thread about this to be full of 1up sucks banter, but that was not the case. Looks like you got some sort of support. You must bring back Cat Fancy.

03-05-2008, 03:06 PM	#19
Lorini New Romantic Join Date: Sep 2004 Location: Pasadena, Ca Posts: 7,413	Um let's not forget about our friends Case and Jason Cross. They could be affected by this as well. Hope not though, they are great on extremetech.

03-05-2008, 03:14 PM	#20
Joel Social Worker Join Date: Apr 2004 Location: Brooklyn, NY Posts: 2,141	This has been in the cards for ages, so I'm sort of glad that something is happening. Hopefully it'll help put everything back on track. There are many ZD outlets I really enjoy.

03-05-2008, 03:32 PM	#21
MikeSolita Hustle Join Date: Mar 2006 Posts: 327	It's a credit to the ZD/1UP staff their network is as good as it is, assuming you're probably not getting much investment from a company shackled with a $400 million debt. I hope things work out. EGM and GFW are two of my favorite magazines. :(

03-05-2008, 03:54 PM	#22
Post-It Spinning Toe Join Date: Jun 2003 Location: Southeast, USA Posts: 902	Hope it works out for everyone involved.

03-05-2008, 03:56 PM	#23
Case Social Worker Join Date: Aug 2002 Location: Silicon Valley Posts: 3,984	I can confirm what Jeff said. It's business as usual, and is a debt restructuring. Beyond that, we can't say much (mostly because we don't know much.) Jason, Joel Durham and I are still on the job.

03-05-2008, 03:57 PM	#24
Supertanker Social Worker Join Date: Jun 2002 Location: Southern California Posts: 3,976	My best wishes for all of you, as well. In addition to maintaining my GFW subscription since time began & reading 1UP/ExtremeTech, I have come to love your podcasts. Hopefully those won't take too big of a hit in any cost reductions.

03-05-2008, 04:03 PM	#25
Jon Shafer Hustle Join Date: Mar 2007 Location: Maryland Posts: 382	Cripes... how (long) does (it take) a magazine publisher (to) build up a billion dollars in debt!? :o Jon

03-05-2008, 04:10 PM	#26
Alan Au New Romantic Join Date: Jun 2002 Location: Studying instead of gaming Posts: 6,233	Yikes! I hope the folks at ZD are okay. :( - Alan

03-05-2008, 04:19 PM	#28
Kunikos How To Go Join Date: Jul 2004 Location: Sigil Posts: 11,674	The reason I read GFW is for exclusive previews and timely reviews, but honestly all of the other stuff I can either get from an online site (Gamespot) weeks earlier, more rapid coverage of news from blog sites (Joystiq), or lively discussion from QT3. I'm assuming that exclusives will transfer elsewhere if print mags go away.

03-05-2008, 04:30 PM	#30
Qessinge Broad Band Join Date: Jul 2007 Location: No. Cal Posts: 263	Chapter 11 can have a positive outcome, I'm not familar with ZD's detailed financial situation, but the company has had shrinking revenue and seems to have always had a boatload of debt dating back to the 90's. Airlines have a history of regularly filing for Ch. 11, in fact United was recently in Ch. 11 for several years. A ton of mortgage companies have also recently filed, and Sharper Image just filed Ch. 11 last month. It seems the game group has stood out as a source of growth and that is a great sign for that team... keep up the good work guys.

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Ziff Davis files for Chapter 11