MUMBAI: Reed Business Information owned Hollywood newspaper Variety has been purchased by leading digital media and publishing company Penske Media Corporation and private equity firm Third Point LLC.

While the terms of the asset purchase agreement between the parties were not disclosed, it has been reported that the PMC and Third Point would have paid $25 million to acquire the loss making 107 year old entertainment newspaper.

PMC Chairman and CEO Jay Penske said, "Since 1905, Variety has been the world‘s premier entertainment news source, and is today one of the most recognized global media brands. We are thrilled to welcome Variety and its exceptional team into the PMC organization. As part of this significant acquisition, we plan to rapidly build upon Variety‘s foundation while extending this invaluable brand‘s presence across the web, broadcast, mobile, and international markets."

"We are enthusiastic that PMC will become the new steward of the great Variety franchise, which Reed Elsevier has built over the past 25 years, and the Silverman family for the 80 years before that," said Variety president Neil Stiles. He added, "PMC is uniquely positioned to preserve and build the market presence of Variety. Their shared values and complementary assets provides for many new opportunities for the business model and brand."

The Variety business today includes Daily Variety, Weekly Variety, Conferences & Events, along with Variety.com‘s searchable archives, interactive box office charting, credits database, film and television data business, in-depth industry calendar, and reviews dating back to 1914.

Reed Business Information CEO Mark Kelsey said, "Variety is an iconic title serving the film and entertainment industry for more than 100 years. With RBI‘s increasing focus on data services, it makes sense for us to sell the Variety business. Variety has an incredibly talented team who have successfully innovated and expanded the franchise in industry news and analysis. I have no doubt the business will continue to thrive under PMC‘s ownership."