Wasserstein leaves assets in limbo

By Anupreeta Das and Robert MacMillan

NEW YORK (Reuters) - The sudden death of star dealmaker Bruce Wasserstein on Wednesday has sparked questions about whether the magazines he nurtured will survive in their current form without him.

Wasserstein, who died at the age of 61, considered journalism his second love after investment banking and counted several well-known media properties among his assets, including New York magazine and The Deal LLC.

His death does not necessarily force a sale of those titles, but it is unclear if his heirs or any new owners will be as devoted to them as he was, given that making a profit from print media assets is getting ever more difficult.

Wasserstein, who was the chief executive of investment bank Lazard (LAZ.N), controlled his media properties in different ways. New York magazine is owned by New York Media Holdings, a company Wasserstein chaired. He owned other assets through his $2 billion (1 billion pounds) buyout shop Wasserstein & Co.

The Deal, which employs about 70 journalists, was spun out of American Lawyer Media in 2000. Trade magazine publisher Penton Media is also one of Wasserstein & Co's investments.

Many media industry players said they doubt these assets will be sold anytime soon, given that they have been mostly successful in their niches.

"Every media property the Wasserstein team has owned has been demonstrably improved, both editorially and as a business," said Jim Friedlich, a partner at investment firm ZelnickMedia. "They are very smart and patient owners."

Still, Wasserstein did not intend to keep every property. He sold American Lawyer in 2007, and earlier this year his private equity firm sought potential buyers for The Deal, publisher of The Deal magazine, which covers the high-stakes world of mergers and the bankers who make them happen.