Black Media, Instead of Mimicking Blogs Why not just Acquire?
As of late we’ve seen so many traditional Black/Urban Media companies either redesign as blogs, create blog properties as part of their holdings, or transform their content channels into blogs. In nearly every case that I’ve seen this happen not one company has been able to knock it out of the park. In many cases they merely bunt it. Cases in point…
BlackVoices building up their stable of blogs that mirror content channels (BVonStyle,BVonSports, BVonMoney, etc.)
Interactive One adding blogs to their holdings and then tacking those properties on the BlackPlanet.com domain
You get the picture.
Surely blogs have some kind of undeniable allure. In some cases they are guilty pleasures. In Media they are the new kids on the block that some love to hate while others embrace. In mainstream media there is M&A activity in the blogosphere. Media companies don’t necessarily feel the need to recreate the wheel, challenge what already exists, or create their own. Long term that would take too much time and resources. They simply either take a strategic investment or acquire.
My biggest question and concern is why doesn’t this same activity happen in Black Media. Instead of resulting to the typical “crabs in a barrel” answer I’m genuinely curious to find out what is missing in our economy that we have yet to see this type of activity in recent times. Especially when Essence is feeling the backlash of their community on their new redesign, Black Voices’ traffic despite trying to incorporate blogs is in a huge slump, and of all Interactive One’s properties Black Planet still out shines many of their properties by light years. If these companies wanted to diversify their portfolio by adding blogs or appeal to a young audience by “acting” like a blog wouldn’t it make more sense just to acquire a blog that is aligned with your brand and what you are trying to build? You wouldn’t have to start from scratch, the traffic would already be there, and 9 times out of 10 the overhead would be ridiculously low….lower than the staff that is needed to “act” like a blog. I know it is a recession but M&A activity isn’t necessarily down. Sure it is no free for all but it is alive in a smarter and more strategic way.
What kind of economy are we creating if independent media doesn’t happen on some sort of liquidity event? This needs to at least be an option and at most serve as an example of possibilities. Not to mention strategically it makes more sense to acquire rather than wait for independent media to seek investment from an IAC, MSNBC, and the like or bootstrap their way to the top. Then they really become your competitors…head on.
Category: Featured, News, Startups, Strategy, Trends, web 2.0 | Tags: black media, M&A, merger and acquisition, New Media, the new black media, The State of Black Media
About the Author Angela Benton is the Founder and Publisher of BlackWeb20.com. Her experience spans a variety of industries including consultative relationships with companies such as UPS, Bizjournals.com, Realestate.com, and Lendingtree.com.
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Essentially, your question is about hiring the bloggers, not the technology. Until there's a blogger who demonstrates themselves as a viable commodity, e.g.; making $$$ with his blog, media companies aren't likely to view them as investments.
Angela:
The issue you raise is a very good one. It is a question that I have often pondered relative to the lack to the lack of combination, collaboration and consolidation among black businesses (across various industries). I could take this discussion in so many different directions, but I will try to stay focused on the key question. Simply put, I think the key reasons for the lack of M&A activity among black media companies (and other industries) is fear of the unknown, an intense focus on holding the only keys to their kingdom’s and lack of game experience. Despite the fact that key black media companies started entering the scene in the 1940′s, mainstream media were in their second and third generation of family ownership by this time. Guys like Rupert Murdock and Ted Turner are the offspring of media moguls who grew up in the business. By the time they took over from their father’s, they were in a much better position to take some of the risks that propelled their companies to new levels. Meanwhile, the likes of Johnson Publishing was still being run by their legendary founder who carried the burden of not only competing in an increasingly competitive industry, but also the burden of carrying the torch, pride of ownership….staying true to the vision for the community. If I were to liken this to a baseball game, black companies are only in the second inning. Black companies are still in that early phase where it’s all about pride of ownership and doing it our way. However, there is a huge difference between creating a family business that you hope will last through multiple generations and developing a massively valuable asset that creates generational wealth. In the black community, there are several examples of the former, but very few examples of the latter (outside of Bob Johnson/BET). This needs to change and it will.
Great Posting Angela,
I don't think traditional black media appreciates new black media enough to invest…Therefore it is black new media's job to get organized and make an EFFECTIVE pitch to old black media. It's time to make the case…i hate seeing black traditional media destroy the legacy that they created.
Great Posting Angela,
I don't think traditional black media appreciates new black media enough to invest…Therefore it is black new media's job to get organized and make an EFFECTIVE pitch to old black media. It's time to make the case…i hate seeing black traditional media destroy the legacy that they created.
I really appreciate your response. I wish you and Ebony/Jet the best. I was raised on the publication and have major respect for the doors you have opened and your legacy.
I still believe a new redesign would really help the publication in more ways than one. I am sure those that are often mentioned on this site would be more than happy to help you and your team out, if you let them.
Again best to you.
You'll have to ask the conferences about that but my guess is that trying to turn around a battleship is always an interesting story. If you've really read my posts then they should answer your questions and give insight as to why digital teams at old media companies hit brick walls when trying to make real and effective changes (financial, legal, refusal to be decisive, etc..). Hopefully they are a guide not for what changes big media can make, but which mistakes you should not make as a growing entrepreneur, and which opportunities you have based on the fact that old media companies will almost by definition be slow to adjust and perpetually behind. If you're looking for any old media company to suddenly “get it” then forget that notion. As long as the bigger check comes from print that's where the focus will be, unfortunately.
The reason it doesn’t make sense is that except for MTO (and maybe Bossip although I doubt it), no blog has the traffic to warrant an acquisition. YBF, Concrete Loop, etc just don’t have enough of a readership.
I sit and often think the same thing. Thanks for putting this out there. Best way for them to establish authenticity online.
Amen to your final point. Rely on the professionals you hire if you hire those with viable knowledge and expertise. That is management 101. On your initial point, I think while you are not positioning BW2.0 for acquisition, I certainly see it as a lynchpin property in a collection of sites that would compliment one another by superserving the urban audience in an authentic and comprehensive manner. I continue to explore resources and methods to execute on my vision for a series of acquisitions in this space.
“I don't see many bloggers making strategic investments and partnerships with each other.”
Very true statement, I agree this needs to change as well.
“When you write the post about bloggers (who are looking to sell) should operate more like business, please note that they should not be so hard to deal with directly. Especially when their inventory is available for pennies at the networks.”
I agree with this also. Great points!
Thanks for the response Angela. I agree with all your answers to my questions. These issues need to be taken into account when looking at the overall problem.
I say that there is no market, because as you noted that type of activity doesn't exist. I don't see many bloggers making strategic investments and partnerships with each other. I mostly see that crab in the barrel attitude. If I was a traditional media company looking to make a move, based on the environment I see, I would overlook an acquisition. Why buy when I can pounce with my resources? (Are we sure they didn't bring a blogger or one of the many trusty social media experts in house to oversee the mimic?)
Quality is not the most important, but I mentioned it because it adds value.
Clutch not considering themselves a blog is a great strategic decision. When it comes to content and its delivery they are doing what both bloggers and the bigger publishers should be doing. I can only hope they are developing the business side of it with the same approach.
When you write the post about bloggers (who are looking to sell) should operate more like business, please note that they should not be so hard to deal with directly. Especially when their inventory is available for pennies at the networks.
Hi Eric,
So what we are talking about here is more about the presentation? A user doesn't really know what CMS (and I am including WordPress and Drupal like systems in here along with complicated CMS systems like a Vingette) is powering a property. Just because a site is powered by a WordPress or Drupal doesn't mean it really needs to look like a blog. Those systems allow for both the immediacy of producing content cheaply but the flexibility in presentation so that the content always looks fresh and can look how you want it to look.
Also I say most are launching blogs well…because they call them blogs, and actually have a blog section. Others really just are blogs, I think Sherri summed it up nicely in her post regarding Essence's redesign when she said something to the effect of “we (the audience) expect more.”
On another but related note there is a trend I am noticing on a few sites that visually looks like a mix between a magazine site and a blog.
In regards to your statement:
“(2) invest substantially in digital so you can have the manpower to be bigger than a blog”
…Or so that they can challenge the blog since there are some pulling in a substantial amount of eyeballs. In these cases goes back to my original point why not acquire (with the money saved on manpower) or at a minimum make a strategic investment.
I agree with your point of creating (or acquiring) various blogs as verticals and selling them that way. Makes all the sense in the world and is proven
One aspect of this that you miss is that it's not about these companies launching blogs per se, then it is the default to a faster, cheaper, more effective way of delivering updated content than the vastly more intense and expensive “multi-channel” websites with complicated CMS engines behind them.
From a daily production standpoint, a blog-like functionality (like Gawker's properties) gives you the ability to at least look immediate and handle small-ish stories that don't necessarily warrant more production. With the multi-section sites, if you put up one new article, it requires moving others to get that one in. In a blog strategy, you lose that element of extra work because what's on top is always new.
Further the simpler blog-style template allows you to create verticals (a la Gawker Media) that can be sold to specific ad groups in a way that sections fronts of a larger, more complex site cannot. So for those large media companies, it's not really about being a blog at all, but figuring out how to produce content in a timely fashion on the cheap.
So to answer your question there are two things to do. 1. Yes, acquire blogs, but more importantly, (2) invest substantially in digital so you can have the manpower to be bigger than a blog
Great questions Jameel. I have actually had the opportunity to be on both ends of the table so I can definitely understand where you are coming from in regards to negotiations with bloggers.
Negotiations aren't that different from negotiations with any small business owner. There is a sense of not wanting to get taken advantage of and that typically surfaces from a lack of understanding or knowledge. To Bloggers credit (and I am one) many people treat bloggers like they don't know the basics of business. I can speak to that personally because I have been in these positions first hand repping BW2.0. I've also been in these positions while working in corporate America so I do understand the thought process.
I was actually thinking of doing another post on why I think bloggers should operate more as businesses. Far too many bloggers don't operate as businesses when they should. This includes when negotiations on a deal sour or aren't to your liking politely passing on them.
In terms of the quality of blogs that exist I don't think that really matters to most. To be honest I think what matters to large media companies is traffic. I don't necessarily agree with this, which leads me to your next point, what would they be buying if not traffic? They would be buying community and they would be buying authenticity. essentially they would be buying another brand.
Why would a blogger want to sell? I'm not saying they would need to sell or should really even want to. What I am saying is that should be an option whereas right now it really isn't. Like any company the decision to sell or take an investment would be that of the owner and the owners vision, goals, and strategy for the business. Why a particular blog would sell or take an investment can come in all different shapes, sizes, and colors.
Most high quality blogs (which BTW Clutch doesn't consider themselves a blog) have some sort of goal to be bigger than themselves and/or influence some level of creative destruction which is why they put so much time, effort, and resources into what they do. Naturally to achieve those goals and to achieve them in a timely fashion before someone else can (speed to market) you need money or resources.
It's not just about acquisition, it's about strategic investments, it's about joint ventures, it's about that type of activity that doesn't exist.
What makes you say there is no market? Is it because there are no bloggers willing to sell? I know plenty.
Glad this discussion is so lively
No we aren't positioning ourselves for an acquisition however I would not complain if that circumstance arised. As you said it would depend on price. Some discussions with others really made me think about the lack of this sort of activity in the our vertical and I'm glad to see many people have been wondering the same thing.
Your point regarding the leadership to actually execute a decision such as this is a great one. My bet is the people in charge aren't the ones thinking this way nor do they control the purse strings. I don't think anything is wrong with learning as you go but you must hire smart people under you and actually listen to them from time to time. Makes for a much easier learning curve.
Very good question, but if they acquire, what are they getting and at what price? Ever tried to negotiate the most basic partnership with a blogger? = Why do most properties have no structured teams? And let's be honest, the quality of the properties are not that great… with the exception of Clutch. And if I was Clutch why should I sell? What am I selling into? To have M&A activity, you need a M&A market. There's no market.
As always BlackWeb2.0 raises a timely and high impact question, but one has to ask…is BlackWeb2.0 positioning itself for an acquisition? I think it should be noted that BlackWeb2.0 indeed fits the criteria outlined by its founder. It has a growing and loyal audience, I assume it operates at a low over-head, the focus, value and quality of its content is generally super-serving an under-served audience. It is a prime target for a larger media concern if the price is right.
Whether general market or targeted niche, economics and strategy are the general drivers of such decisions to acquire, partner or create. One methodology companies must follow is the basic exercise of a SWOT Analysis to identify whether or not there is a strategic opportunity – one which will positively impact the course of the business – or not and with what resources does an organization have at hand now or in the future. Such an analysis will determine whether or not their is a deficit in the current business that can be filled by going to the outside or turning to the internal organization and at what cost. Businesses often stray from their core competencies and stretch themselves in an attempt to grow. More often than not this approach results in less than desirable results which means they should have looked to external opportunities or ultimately passed on the pursuit altogether.
The better question to ask in the post is do the urban media companies have the talent in leadership and purse-string controlling roles to guide the growth strategies of these organizations, or are they simply trying to learn as they go….?
So true. I am not sure a lot of them get that though. But, still this is a great article and truthfully a lot of us would be very open to this idea. If they don't we will all do something together soon and give them a run for their money. JMO
Great question and one I've asked myself, often. Been in GM publishing, the digital space for longer than most Black or white, published my own pubs and have brought insight and experience to our people. Fell on deaf-ears. Scared, stuck in a copycat mindset, don't trust their instincts, don't research the audience, not tuned into emotional cues, let someone clueless dictate strategy and simply scared to put their butts on the line. I could go on and on. Often run by the wrong folks (but that's another discussion), and simply not meeting an overwhelming demand for something smart, fun, concise and useful. I come to get info and do what I do on a site. I want to discover it and in the process experience something new and exciting I may not have come for. Not that difficult a concept to grasp. Instead we're offered a hodgepodge of crap, bad images, dull creative, poor writing and horrible functionality as if we think Black folks aren't tech savvy! I digress!
Media and magazine are such a powerful tool, a wonderful gift, the opener of doors, a means of escape and tools of discovery. Someday soon, a group will emerge that gets it right.
Blogging is not the art of releasing a press release….it's an interactive medium of authenticity.
Great post Angela. Thanks for raising the thoughtful question. Very curious to see the impact of your article.