American Media's Bid for Weider Tops $335 Million

American Media Inc. and Evercore Partners are in talks to buy Weider Publications, owner of Shape and Men's Fitness magazines, for more than $335 million, people familiar with the situation told The Wall Street Journal.

The talks follow one of the most competitive magazine auctions of the year and come despite a threatened crackdown last week by the Federal Trade Commission on advertising of dietary supplements, which are a big source of revenue for Weider and other health magazines. The talks are continuing and may not result in a deal, and other bidders may re-emerge if Weider and American Media can't hammer out an agreement.

Yet people close to the situation said the auction confirmed continued strong interest in fitness magazines despite the weak ad market and potential fall-out from the FTC actions.

A spokesman for American Media declined to comment. Weider didn't return calls seeking comment.

A deal to buy Weider, whose magazine titles include Shape, Men's Fitness, Flex and others, would be a big win for American Media. The company, which owns the National Enquirer and is run by publishing magnate David Pecker, has been trying unsuccessfully to branch out from its core tabloid business into other publications in recent years. The company is backed by Evercore, the New York-based investment firm run by Roger Altman, and has been on the losing end of a number of publishing auctions, including sales of Emap PLC's U.S. operations and the magazine unit of the old Times Mirror Co.

American Media and Evercore emerged as the top bidders in a heated auction for Weider. Final bids were due Friday, and at least six bidders made offers. American Media and Evercore's offer of more than $335 million was by far the highest, with the other offers closer to $300 million. Other bidders that submitted offers included William Reilly, the chief executive of Aurelian Communications LLC; Cypress Capital; Veronis, Suhler Stevenson & Associates and Warburg Pincus.

American Media has huge clout on the newsstand through its large-circulation tabloids and the distribution company it owns. Mr. Pecker has long believed that other, more traditional consumer-magazine titles could benefit on the newsstand from being added to his roster. Such a position might make American Media more attractive to bidders whenever Evercore decides it wants to recoup its investment.