Magazine Acquisition Strategy

Craig Fuller's strategy involves acquiring and modernizing old magazine titles focused on expensive hobbies, using the media business to bootstrap commerce opportunities. The company, Firecrown, has acquired 44 magazines and is projected to do $50M in revenue with 18% EBITDA.

Key Points:

• Acquisition Strategy:

  • Buy magazines for 3-5x EBITDA
  • Target publications around expensive hobbies (flying, boating, RC planes)
  • Purchase in bulk from old family companies (Meredith, Rodale, Bonner)

• Business Model:

  • "Negative CAC" - customers pay for magazine subscriptions, providing built-in audience
  • Use media business to pay for audience creation
  • Bootstrap commerce products to sell to established audience
  • Example: Flying Magazine used to sell plots of land around airstrip development

• Current Performance:

  • 44 magazine titles acquired
  • Q4 2024: $15M revenue
  • 2024 Projection: $50M revenue with 18% EBITDA
  • 2030 Target: $1B revenue with 30% profit margins

• Monetization Examples:

  • Flying Magazine:
    • Selling private jets
    • Real estate development around airstrip
    • Aviation club memberships
  • Other verticals include boating, sailing, fishing, trains, and astronomy