Black Media, Instead of Mimicking Blogs Why not just Acquire?

by Angela

November 3, 2009

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…

Vibe relaunching as a blog

Essence.com’s latest redesign

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

marcellusalexander

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.

ebonyjet

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.

JS

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.

AB

I sit and often think the same thing. Thanks for putting this out there. Best way for them to establish authenticity online.

Angela Benton

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 :)

Jameel R. Gordon

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.

Angela Benton

"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!

Jonathan Moore

Great post Angela. Thanks for raising the thoughtful question. Very curious to see the impact of your article.

gettogetha

Blogging is not the art of releasing a press release....it's an interactive medium of authenticity.

Dede @ Clutch

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