[This post has been updated] Zinio, the digital magazine provider is apparently seeking a buyer, according to a story published by Fortune magazine.
The San Francisco-based company has hired investment bank Montgomery & Co. to manage the process, with one source saying that the company is seeking between $50 million and $100 million. No idea yet if there is buy-side interest at that price.Among its ventures, Zinio Canada partners with Magazines Canada in its Digital Newsstand, whereby dozens of member magazines make digital replica editions available, both by subscription and single copy.
Zinio raised venture capital in the early part of the aughts, from brand-name firms like Apax Partners, New Enterprise Associates, North Bridge Venture Partners and Commonwealth Capital Ventures. But those firms all sold their stakes (for very little) more than five years ago to a real estate and hotel magnate named David Gilmour, who currently serves as the company's executive chairman.
[Update: Folio: reports that Zinio put out a statement saying, indeed, that it has retained a merchant bank to "facilitate capital raising strategies and discussions."
"While the company has been engaged in similar discussions in the past," [it said] "Zinio has never had a stronger vision, strategy and roadmap to engage the right set of potential partners."]