Cox Enterprises, Landmark to divide Trader Publishing

by Heather B. Hayes
for Virginia Business
May 2006

In business, breaking up isn’t hard to do. In fact, a division of assets can benefit both parties as in the case of media giants Cox Enterprises Inc. and Landmark Communications Inc. They’ve divided the assets of Trader Publishing Co., their jointly held classified advertising venture.

Trader Publishing, started in 1991, had grown from $150 million in annual sales to $1.3 billion during the past 15 years. It’s the largest publisher of localized print publications and Web sites in all major market segments for classified advertising in the country.

Conrad M. Hall, Trader Publishing’s CEO, says the decision allows the two companies to pursue “new paths that make sense for their respective business strategies in 2006 and going forward.”

Cox Enterprises, which has a strong focus on the automobile market, will get Trader’s 341 automobile-related publications, including Auto Trader, Auto Mart and Truck Trader, as well as four companion Web sites for vehicles, such as AutoMart.com and AutoExtra.com. Cox also gets Trader’s free distribution network, as well as all of Trader’s information services and Web services businesses. Landmark will transfer to Cox its 26 percent interest in AutoTrader.com, a popular automotive Web site that has been operating as a separate company.

Cox, which also owns Manheim Auctions, a wholesale outlet for registered automobile dealers, will combine these Web and publishing outlets under Cox Auto Trader, which will be based in downtown Norfolk.

Landmark Communications, which originally wanted to sell its half of Trader Publishing to Cox, will hang onto what’s left: 443 publications and 38 Web sites serving the real estate, apartment, employment and recreational markets. These include The Employment Guide and For Rent and Homes.com. These outlets will be part of a new Landmark company called Dominion Enterprises, which will also be based in Norfolk. Hall will be CEO of Dominion Enterprises.

Cox and Landmark will retain joint ownership of Trader’s 11 regional printing plants and related transportation assets. The new companies are expected to be fully formed by the end of June.