Content Drives Commerce

A strategy of buying undervalued media properties (especially magazines) and leveraging their dedicated audiences to build larger commerce and service businesses.

Core Strategy

• Buy established magazines/media with loyal audiences at 3-5x EBITDA
• Focus on enthusiast categories where audiences spend significant money
• Leverage existing audience trust to sell related products/services
• Keep media business profitable while building commerce opportunities
• Target magazines that have survived multiple decades, proving audience loyalty

Acquisition Approach

• Look for undervalued media properties others won't touch
• Focus on magazines with decades of history and loyal readership
• Typical purchase price: 3-5x EBITDA
• Buy portfolios of related titles when possible for operational efficiency
• Target publications where only ~25% of costs are actual content creation

Audience Monetization Strategy

1. Fix core media business

   • Raise subscription prices significantly
   • Improve print quality and content
   • Willing to lose low-value subscribers
   • Focus on quality over quantity in audience

2. Build commerce opportunities

   • Identify high-value products audience already buys
   • Create related services (financing, real estate, etc.)
   • Run commerce businesses as separate P&Ls
   • Hire dedicated teams/CEOs for each commerce venture

Example: Flying Magazine Case Study

• Purchased for ~$3.5M

• Initial stats:

  • 108,000 subscribers
  • $2.5M revenue
  • $500k EBITDA
  • Losing $7 per subscriber

• After changes:

  • Raised prices significantly
  • Dropped to 32,000 subscribers initially
  • Grew back to 45,000 subscribers
  • Doubled subscription revenue
  • Added aircraft financing and real estate ventures

Keys to Success

• Patient capital approach
• Willing to invest in quality improvements
• Focus on audience intent data
• Separate P&Ls for media vs commerce
• Build dedicated teams for each venture
• Target enthusiast categories with high spending