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TAMPA, Fla. (AP) - Source Interlink Cos., a magazine, CD and DVD distributor to leading grocery and book store chains, said Monday it agreed to buy the publisher of Hot Rod, Motor Trend and other special interest publications for $1.2 billion in cash. Shares of Source Interlink tumbled more than 15 percent after the agreement was announced.
Source Interlink last year began exploring options such as acquisitions or putting itself up for sale. The deal to buy Primedia Inc.'s magazine unit expands it into publishing and digital content and comes a month after Los Angeles billionaire Ron Burkle, who controls Source Interlink, was spurned in his efforts to buy media conglomerate Tribune Co.
Bonita Springs-based Source Interlink will purchase Enthusiast Media, which publishes 70 special-interest magazines, including Soap Opera Digest. It also operates 90 associated Web sites. The unit posted 2006 revenue of $524.8 million.
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