FAMILY TIES: Mary Berner is likely to be the next chief executive officer of Reader’s Digest Association, a probability that has become one of the worst-kept secrets in the media world. What has been discussed less is how the former ceo of Fairchild (parent of WWD) linked up with the sleepy pocket-magazine in Pleasantville, N.Y. Well, she can thank her bro. Berner’s brother, Robert Berner 3rd, is a managing director at Ripplewood Holdings, the private equity firm that is leading the acquisition of RDA for $2.4 billion, including debt considerations. His sister would replace Eric Schrier, who has held the position only since January. Schrier also sits on the board and his total cash compensation for fiscal year 2006 was just over $1 million, according to data from Hemscott. Spokesmen at RDA and Ripplewood declined to comment on any impending change in management. Ripplewood Holdings has approximately $10 billion in assets and its portfolio includes Time Life and educational publisher WRC Media. Schrier did not return a call by press time. Meanwhile, Thomas Ryder, RDA’s chairman, is expected to stay on into next year as a special adviser to the ceo to help with the transition, according to SEC filings. If Ripplewood lets him go, Ryder will get up to $4 million if a change in control of the company occurs on or prior to June 30.
No official announcement has been made about hiring Mary Berner, but that may be because the acquisition is far from over. If everything goes according to plan, the deal could close by the end of the first half of next year. RDA recently reported its first-quarter fiscal 2007 revenue was up slightly from last year, to $517 million. The company projects to grow by midsingle digits for the full fiscal year.
But that doesn’t mean things are pleasant in Pleasantville. If Berner takes over, she faces the major challenge of turning around the core Reader’s Digest title, which has had flat circulation for some time — for the first half, total circulation was 10,094,286, compared with 10,228,531 for the same period two years ago. RDA has had more success with Every Day With Rachael Ray, which aims to increase its rate base to 1.3 million from 750,000 with its February issue.
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In the meantime, Berner presumably is negotiating with Ripplewood, and an equity stake is likely part of the deal. The question is: How hard will the sister — who’s known to be a tough negotiator — be on her brother? — Amy Wicks
BUILDING A WEB: While most of the buzz around the launch of Condé Nast’s Portfolio has been about whom editor in chief Joanne Lipman has lured away from The New York Times and the Wall Street Journal, the impending title is building a staff for its Web site. Which is a good thing, given that Forbes, Fortune and BusinessWeek are all bulking up their sites because they believe that’s where the readers are going. Most recently, Sara Clemence, lifestyle editor of forbes.com, was tapped to serve in the same capacity at portfolio.com. She will oversee coverage of real estate, travel, food and other trappings of high earners. (“Business of Life,” anyone?) Like many of her new Portfolio colleagues, Clemence has a newspaper background — she was a reporter at the Albany Times-Union and The Anniston Star before heading to Forbes.
Zubin Jelveh is leaving Reuters, where he has reported on the Treasury for only six months, to be a writer-producer for Portfolio’s Web site. He was previously a multimedia Web producer for nytimes.com’s business section. Laura Rich, who will be assistant managing editor of portfolio.com and came from inc.com and fastcompany.com, begins Friday.
Portfolio.com will launch on April 24, at the same time as the magazine, and will continue to be updated. It will have to be, since the second issue of the magazine won’t appear until next September. — Irin Carmon
TOYS FOR BIGGER BOYS: Ever wonder how the staff at Stuff magazine can concentrate amid all those half-naked photo spreads every month? The highest bidders at its silent auction for prizes, such as “be a Stuff editor for the day,” will soon find out. The silent auction is part of Stuff’s holiday party on Dec. 5 at Hammerstein Ballroom in support of its gift guide, Toys for Bigger Boys. Other items up for grabs are a power lunch with Ivanka Trump (she appeared on the cover of the September issue) and a martini lunch with two cast members of NBC’s “The Office.” — A.W.