Magazine Acquisition Playbook

Craig Fuller built a $60M revenue business in 2 years by acquiring and transforming magazine properties. Here's the framework he used.

Core Acquisition Strategy

• Buy magazines at 3-5x EBITDA multiples
• Target magazines that have survived multiple decades
• Look for titles with dedicated enthusiast audiences
• Focus on categories where audiences spend significant money
• Acquire multiple titles to share infrastructure costs

Magazine Turnaround Playbook

• Fix broken pricing models

  • Raise subscription prices significantly
  • Willing to lose "freeloader" subscribers
  • Example: Raised Flying Magazine prices from $8 to $30-40/year
  • Lost 70% of subscribers but doubled subscription revenue

• Improve product quality

  • Upgrade paper quality
  • Invest in editorial team expansion
  • Enhance digital presence
  • Focus on high-quality content

• Optimize advertising

  • Raise advertising rates
  • Target advertisers based on reader intent
  • Focus on quality over quantity of audience

Beyond Traditional Media Revenue

• Build commerce businesses around audience

  • Finance (aircraft loans)
  • Real estate (aviation communities)
  • eCommerce (merchandise)
  • Services specific to audience needs

• Look for asymmetric opportunities

  • Small downside (magazine purchase price)
  • Large upside through additional business lines
  • Use bank debt to finance acquisitions
  • Keep media profitable while building additional revenue streams

Key Success Factors

• Magazines must have:

  • Dedicated enthusiast audience
  • Decades of history
  • Survived internet disruption
  • Audience willing to spend money in category

• Business approach:

  • Treat media as profitable standalone business
  • Use audience to build additional revenue streams
  • Separate P&Ls for media vs commerce businesses
  • Hire dedicated teams for new business lines

Financial Metrics

• Typical acquisition costs: $1-3.5M per title
• Current business metrics:
  • $60M annual revenue run rate
  • 20% profit margins
  • Goal of $1B revenue by 2030
  • 54 titles acquired so far