Steve Forbes: Fortune Trying To 'Disrupt' Forbes Media

NEW YORK –- Steve Forbes says Fortune magazine had an ulterior motive for reporting Thursday on Forbes Media's financial woes stemming from an ill-timed deal with private equity firm Elevation Partners.

Shortly after publication, the company chairman and Forbes editor-in-chief told staff that Fortune published the story to hurt a top competitor, according to a memo obtained by The Huffington Post. The memo reads:

Today Fortune magazine published a story on Forbes with the clear intention of disrupting the business of its most formidable competitor.

Fortune was aware that this was highly confidential, private information and of no value to release to the public. Though the intention is to harm our business, it will not adversely impact Forbes because it highlights a very difficult time in the past when all the media industry was going through unprecedented upheaval.

Forbes has the finest team -- you -- in the media world today. Forbes is profitable and is successfully navigating these extraordinarily turbulent seas. The company continues to grow and thrive with powerful new strategies and talent.

In the piece, Fortune reported that Forbes Media "violated the covenants" of its credit line following the 2006 deal, when Elevation -- which has Bono as a backer -- bought a 45 percent stake of the media company just as the magazine market started tanking. Fortune described the deal as a "failure."

"It burdened Forbes Media with debt that it ultimately struggled to pay, so much so that the company had to be gutted," wrote Fortune's Katie Benner. "Five years later Forbes Media's earnings power has declined precipitously, and Elevation is nowhere near the return on investment it had predicted."

In a statement, Forbes Media said the company is "profitable and in full compliance with all bank loan covenants." The company added that "Elevation Partners are enthusiastic supporters of the direction of the company and have been full participants as these strategies have been developed."

Comments

[mizerello]

02:45 PM on 08/03/2011

Wa wa wa. Yet another whining right wing victim. And just another rich s.o.b. Who can credit his good fortune to his daddy. Donald Trump's twin brother!

[holyghostie]

09:53 PM on 08/02/2011

Mitch McConnell and Steve Forbes had the same daddy.

[john rajah]

07:26 AM on 08/02/2011

The billionaire media owners cannot stand scrutiny of themselves

[kkdkdkdkdk]

05:56 AM on 08/02/2011

Why do they always use guys like Forbes with "movie star" good looks to make their point. Don't we ugly people get a chance to voice our views? Wow, put him and Krugman on at the same time and announce an alien invasion and you can cause a world wide panic attack.

[nuited]

03:25 PM on 07/31/2011

the dead are often dug up and analyzed as to what they ate or how they lived and died. The treasures are usually buried with them when they die for us the living to see that it is only good here on earth, too bad we have a living walking dead group of people here who will live to find out that all that they acquired at the expense of everyone else will not depart with them and it is shameful to pay homage to elements (paper, oil, gas and metal) which neither see, hear or speak. The fruit does not fall far from the tree in the midst.

[LogicalMathMan]

12:41 PM on 07/31/2011

Does anyone else think Forbes and 'Turtle' McConnell could be brothers?

[SofaKingKool]

11:35 PM on 07/31/2011

haw!

[john rajah]

07:30 AM on 08/02/2011

Was Steven's dad a Republican who spouted Christian values at any opportunity?

[bluerednot]

09:35 PM on 07/30/2011

Malcom was interesting and had "street smarts" and a genuine sense of humor... Steve ... not so much.

[Uosdwis]

05:25 PM on 07/29/2011

Who's got two thumbs and doesn't like paying taxes?

[JackHoffman]

03:11 PM on 08/02/2011

He has two thumbs? :)

[jumpinjezebel]

04:00 PM on 07/29/2011

I'm for the "fair tax" take all his money.

[Djelem]

11:44 AM on 07/29/2011

I would love to trip over Steve Forbes passed out on some skid-row with a wine bottle on his chest!

[FilthyHarry]

11:14 AM on 07/31/2011

I'd take his bottle from him.

[First Blast]

11:14 PM on 08/01/2011

YES!

[moby49]

10:29 AM on 07/29/2011

Steve you need to stop showing up on every Fox show and pay attention to your business. Everyone knows your game.

[calloy]

10:09 AM on 07/29/2011

steve forbes is just about the creepiest dude i ever saw in my life. learn to blink, man!

[First Blast]

11:16 PM on 08/01/2011

You just know he has some creepy fetishes. He probably likes to dress up as a pauper and have his wife beat him with a leather strap.

[calloy]

11:40 PM on 08/01/2011

"please, sir, can i have another?" okay. i'll be going to shampoo my brain now

[Kenz300]

08:13 AM on 07/29/2011

Inherited money does not make you a smart person.

Losing inherited money makes you.........

[okiedemocrat]

07:08 AM on 07/29/2011

Rupert Murdoch, Steve Forbes...couldn't be more pleased that these billionaires are having financial problems.

[huffpost113]

06:25 AM on 07/29/2011

Forbes must have had financial troubles for some time. Their server is THE WORST. The Forbes.com site NEVER LOADS. So I'm not reading their articles. No time to waste.