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FILE – On this Thursday, November 16, 2017, a file photo, an issue of Time magazine is posted on a booth in New York. Time Magazine is sold by Meredith Corp. to Marc Benioff, co-founder of Salesforce, and his wife. The sale is almost eight months after Meredith Corp. finalized the purchase of Time Inc. (Photo AP / Mark Lennihan, File)
In recent decades, entrepreneurs and moguls have built and expanded their fortunes by creating magazines or selling magazines. In recent years, this has been the opposite in the newspaper and distressed magazine sectors, with off-market billionaires acquiring media brands almost in parallel.
The most recent example is the announcement made yesterday of the acquisition of Time magazine from Meredith Corp. for $ 190 million in cash by Marc and Lynne Benioff. Marc Benioff is CEO and co-founder of Salesforce.com, the $ 8.3 billion cloud-based CRM platform in San Francisco for 19 years.
Marc Benioff, President and Co-CEO of Salesforce.com Inc., speaks at the Global Climate Action Summit in San Francisco, California, USA on Thursday, September 13, 2018. The event brings together leaders from industry and politics working on improving climate conditions and concerns in the world of today. Photographer: David Paul Morris / Bloomberg
the Time magazine transaction is a personal acquisition by the Benioffs and unrelated to Salesforce. The Benioffs will not be involved in the daily operations and journalistic decisions of the brand, according to a Meredith statement.
Benioff joins Jeff Bezos from Amazon (Washington Post), nabob and pharmaceutical surgeon Patrick Shoon-Shiong (Los Angeles TimesLaurene Powell Jobs (The Atlantic) and other extremely wealthy people who have bought top-notch media brands in the last six years.
Sales of Time and three other former Time Inc. giants are expected months ago, after Meredith reported shortly after closing the acquisition in January Time, Fortune, Illustrated Sports and Money.
Divestments of this nature are sometimes perceived with skepticism – great brands as hobbies for the wealthy attracted by the cultural power that the media continue to have. The question is whether this value is residual or whether an infusion of energy and reflection can reverse the brands that struggle to adapt when the economic model of their industry is broken.
In a series of e-mail interviews, several media officials viewed the transaction as a positive development. "This acquisition demonstrates the power and appeal of iconic media brands," said Bonnie Kintzer, CEO of Trusted Media Brands. "In addition, it shows that printing continues to be attractive even for people (or investors) who are impregnated with digital technology."
A variety of executives echoed this sentiment. "I think this agreement makes an excellent statement about journalism and the importance of keeping it alive," said Bob Sauerberg, CEO of Condé Nast.
"New buyers include the huge brand equity that some of these assets have built," said Eric Zinczenko, CEO of Bonnier. "They also know that through capital injection, these assets can shift away from the traditional media model and move toward new sources of revenue that have not yet been explored."
Even some investment banks and industry observers say they are optimistic. Samir Husni, director of the University of Mississippi's Innovation Center Magazine and one of the best-known press advocates in the past 20 years, describes the move as a routine affair – in a good way. "Business people buy or create media companies," says Husni. "Henry Luce did not start as a journalist. Billionaires in the technology world have more confidence in traditional and print media than in the print media themselves. Go understand. " [Disclosure: I’m a member of the Magazine Innovation Center Board of Directors.]
Wilma Jordan, founder and CEO of New York-based investment bank JEGI, says Time magazine transaction is a "wonderful validation" of the years that publishers have devoted to the brand's development in Time Inc. titles. "And as always, the power of the press is still at stake," he added. she. Jordan notes that the difference between recent print transactions and those of previous years, such as the 1988 sale of TV Guide for $ 3 billion, is that modern magazine titles are selling well below their high values. Effectively, Time magazine posted a turnover of $ 173 million in 2017, according to the The Wall Street Journal. It is expected to decrease by 9% this year to $ 158 million.
Not all observers view the transaction as a validation of the sector. Reed Phillips, CEO of investment bank Oaklins DeSilva + Phillips, also based in New York, suggests that media companies, especially printing companies, are much less profitable than before, to the point that they have now need benefactors. "Benefactors do not usually focus on how the business works, but on doing things right or making their voices heard," says Phillips.
David Nussbaum, CEO of food media company America's Test Kitchen, describes these acquisitions as "vanity purchases."
"They are trying to buy a chair of intimidation; a political play – anything but an attempt to make money through acquisitions, "says Nussbaum. "It's really no different from private equity days, when Hearsts, Annenbergs, Maxwells, Conrad Black and many other wealthy families and individuals have sought out the inherent prestige, power, platform and sex appeal to the property of the major media. What is new is that investors can not even claim to buy for a return on investment. "
"I guess it's the cynical way to look at these offers," he continues. "Some would say that purchases like Bezos buy the Washington Post and Benioff buy Time are realized with the true will to preserve a free press in a world where it is extremely difficult to earn money with the written press.
Meredith says it "plans to announce agreements for the remaining sales of assets in the near future. "
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FILE – On this Thursday, November 16, 2017, a file photo, an issue of Time magazine is posted on a booth in New York. Time Magazine is sold by Meredith Corp. to Marc Benioff, co-founder of Salesforce, and his wife. The sale is almost eight months after Meredith Corp. finalized the purchase of Time Inc. (Photo AP / Mark Lennihan, File)
In recent decades, entrepreneurs and moguls have built and expanded their fortunes by creating magazines or selling magazines. In recent years, this has been the opposite in the newspaper and distressed magazine sectors, with off-market billionaires acquiring media brands almost in parallel.
The most recent example is the announcement made yesterday of the acquisition of Time magazine from Meredith Corp. for $ 190 million in cash by Marc and Lynne Benioff. Marc Benioff is CEO and co-founder of Salesforce.com, the $ 8.3 billion cloud-based CRM platform in San Francisco for 19 years.
Marc Benioff, President and Co-CEO of Salesforce.com Inc., speaks at the Global Climate Action Summit in San Francisco, California, USA on Thursday, September 13, 2018. The event brings together leaders from industry and politics working on improving climate conditions and concerns in the world of today. Photographer: David Paul Morris / Bloomberg
the Time magazine transaction is a personal acquisition by the Benioffs and unrelated to Salesforce. The Benioffs will not be involved in the daily operations and journalistic decisions of the brand, according to a Meredith statement.
Benioff joins Jeff Bezos from Amazon (Washington Post), nabob and pharmaceutical surgeon Patrick Shoon-Shiong (Los Angeles TimesLaurene Powell Jobs (The Atlantic) and other extremely wealthy people who have bought top-notch media brands in the last six years.
Sales of Time and three other former Time Inc. giants are expected months ago, after Meredith reported shortly after closing the acquisition in January Time, Fortune, Illustrated Sports and Money.
Divestments of this nature are sometimes perceived with skepticism – great brands as hobbies for the wealthy attracted by the cultural power that the media continue to have. The question is whether this value is residual or whether an infusion of energy and reflection can reverse the brands that struggle to adapt when the economic model of their industry is broken.
In a series of e-mail interviews, several media officials viewed the transaction as a positive development. "This acquisition demonstrates the power and appeal of iconic media brands," said Bonnie Kintzer, CEO of Trusted Media Brands. "In addition, it shows that printing continues to be attractive even for people (or investors) who are impregnated with digital technology."
A variety of executives echoed this sentiment. "I think this agreement makes an excellent statement about journalism and the importance of keeping it alive," said Bob Sauerberg, CEO of Condé Nast.
"New buyers include the huge brand equity that some of these assets have built," said Eric Zinczenko, CEO of Bonnier. "They also know that through capital injection, these assets can shift away from the traditional media model and move toward new sources of revenue that have not yet been explored."
Even some investment banks and industry observers say they are optimistic. Samir Husni, director of the University of Mississippi's Innovation Center Magazine and one of the best-known press advocates in the past 20 years, describes the move as a routine affair – in a good way. "Business people buy or create media companies," says Husni. "Henry Luce did not start as a journalist. Billionaires in the technology world have more confidence in traditional and print media than in the print media themselves. Go understand. " [Disclosure: I’m a member of the Magazine Innovation Center Board of Directors.]
Wilma Jordan, founder and CEO of New York-based investment bank JEGI, says Time magazine transaction is a "wonderful validation" of the years that publishers have devoted to the brand's development in Time Inc. titles. "And as always, the power of the press is still at stake," he added. she. Jordan notes that the difference between recent print transactions and those of previous years, such as the 1988 sale of TV Guide for $ 3 billion, is that modern magazine titles are selling well below their high values. Effectively, Time magazine posted a turnover of $ 173 million in 2017, according to the The Wall Street Journal. It is expected to decrease by 9% this year to $ 158 million.
Not all observers view the transaction as a validation of the sector. Reed Phillips, CEO of investment bank Oaklins DeSilva + Phillips, also based in New York, suggests that media companies, especially printing companies, are much less profitable than before, to the point that they have now need benefactors. "Benefactors do not usually focus on how the business works, but on doing things right or making their voices heard," says Phillips.
David Nussbaum, CEO of food media company America's Test Kitchen, describes these acquisitions as "vanity purchases."
"They are trying to buy a chair of intimidation; a political play – anything but an attempt to make money through acquisitions, "says Nussbaum. "It's really no different from private equity days, when Hearsts, Annenbergs, Maxwells, Conrad Black and many other wealthy families and individuals have sought out the inherent prestige, power, platform and sex appeal to the property of the major media. What is new is that investors can not even claim to buy for a return on investment. "
"I guess it's the cynical way to look at these offers," he continues. "Some would say that purchases like Bezos buy the Washington Post and Benioff buy Time are realized with the true will to preserve a free press in a world where it is extremely difficult to earn money with the written press.
Meredith says it "plans to announce agreements for the remaining sales of assets in the near future. "
