A photo with a July 18 Business article on Norman Pearlstine's hiring by Carlyle Group was of John Huey, Pearlstine's successor as editor in chief of Time Inc. A photo of Pearlstine appears here.
Time Ex-Chief Pearlstine to Join Carlyle Group
Tuesday, July 18, 2006
Norman Pearlstine, editor in chief of Time Warner Inc.'s magazine business until January and a former managing editor of the Wall Street Journal, will join Washington private equity firm Carlyle Group this September as a senior adviser -- a sign the buyout firm may be shopping for print and Internet-based media companies.
Pearlstine will work with Carlyle's telecommunications and media group, advising the firm on strategy and trends, and reviewing business plans in the media sector.
"I've had the luxury of great journalism jobs at the Wall Street Journal and Time Inc., and I've done everything in print and wasn't really equipped to be a broadcast personality," Pearlstine said. "I've been watching some of the big private equity deals in media, and I'm interested in the way they look at media."
Carlyle, with $41.9 billion of investments under management in corporate buyouts, real estate, venture capital and specialty finance, has not historically been a big investor in traditional media such as broadcast television, magazine and newspaper publishing. The firm's telecommunications and media group is dominated by such telecommunications veterans as former Nextel Communications Inc. chief executive Daniel Akerson and former Federal Communications Commission chairman William E. Kennard. Its media investments have gravitated toward niche publishing and cable TV systems.
Carlyle spokesman Christopher Ullman said Pearlstine's hiring indicates "an increased emphasis" on traditional media investing. "Clearly we have an abundance of talent on the telecom side, and Norm joining is a way to balance that out."
Ullman said Pearlstine will work with Carlyle's corporate buyout and venture capital teams that evaluate print, television and new-media companies.
In the past year, several large traditional media companies came up for sale, including newspaper publisher Knight Ridder Inc. and the Univision Spanish-language cable network. Carlyle did not make a final bid for either. Carlyle's venture group has made a number of investments in new media, such as HealthCentral Network of Arlington, a provider of Web sites about specific diseases. Earlier this year, it was part of a group of private equity firms that bought Dutch specialty-information publisher VNU NV.
Pearlstine, 63, who has spent the past few months writing a book about confidential sourcing, said he planned to spend most of his work time with Carlyle. He was editor in chief at Time Inc. for 11 years. In March, he was elected chief executive of the American Academy in Berlin, where Carlyle founder David Rubenstein is a trustee.
Pearlstine joins a group of 15 senior advisers to Carlyle, a salaried group made up mostly of retired industry executives and government officials who help bring Carlyle business, evaluate investments and trends, and sit on some boards of Carlyle-controlled companies.