Quote to Note: The Future and Niche Magazines about Issues
January 13, 2016
I find “real” publishers a source of entertainment. In this particular incident, I want to highlight two themes:
- A Silicon Valley success believes that a dead tree publication can be given the digital rework and succeed
- Pumping $20 million into a dead tree outfit says something about money management and common sense in the digital world
Navigate to “Owner of New Republic Puts IT Back on Market.” If you have to pay to view the story, hunt down the January 12, New York Times (dead tree edition) and look for page B 5.
The main idea is that a Facebook whiz bought a magazine, reorganized, pumped in dough, and apparently failed.
The notion of “saving” an outfit is one that gives new life to stakeholders, employees, and others involved in the operation. Think Yahoo and the Xoogler. How is that working out?
The reality is that success in a digital endeavor may be a matter of luck, timing, and the missteps of some other competitors. Google emerged from a pretty disappointing Web search idea when it was inspired by the Overture/GoTo pay to play model.
Tucked into this mini business case about a financial black hole was this quote to note:
“The New Republic has been a money-losing proposition for 100 years,” said Jacob Weisberg, who once worked for the magazine, and is now the chairman of the Slate Group. “The idea that anyone is going to turn it into a business now, when it has never been harder, is implausible.” In his letter, Mr. Hughes said that his aim “is to place The New Republic in the hands of the most promising and dedicated potential steward.” That might take many forms, he said. “Perhaps it should be run as part of a larger digital media company, as a center-left institute of ideas, or by another passionate individual willing to invest in its future,” he wrote. “There are many possibilities.”
Perhaps Jeff Bezos or Sheldon Adelson quality as potential buyers?
Are there management lessons to be learned from this experiment in Digital Age management? Yep.
One might be having cash to invest in a money losing magazine may not generate a fungible return. One upside is that business schools can create an interesting case for future MBAs to consider.
Stephen E Arnold, January 13, 2016
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