Vice and Refinery29 merger is a clear signal of just how hard it is for digital media companies to 1) survive, let alone flourish on ad revenues 2) build on third-party platforms vs. owned and operated websites and apps 3) create and sustain passion brands with youth culture
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Unless you have enough influence over an audience where you become a must buy at a premium (whether that’s ads, subs, merch, etc), it’s hard to not lose money. Your revenue is going to be valued at closer to 1x than 6-10x of previous era when these co’s raised at high valuations
Dave, you're saying the valuation is 1x if you do it correctly? Or 1x when you don't.
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I’m saying most digital publishing companies ended up having bad economics, mostly b/c aggregators/platforms won. I think you need an EBITDA growth story these days, not just a revenue growth story. You can do a lot of things very right and still end up losing.
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Getting liquidity as mid-sized company is hard. There has to be a strategic reason the bigger company needs you / willing to pay a premium
End of conversation
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