Category Archive: 'Subscription Site M&As'

Reed Sells Subscription Powerhouse Variety, Focuses on Data Services

Date: March 26, 2012 Topic: Subscription Site M&As Tags: , ,

Reed Business Information recently announced its plans to sell Variety, the Hollywood industry daily and weekly newsletter that’s made a success of online subscription sales in recent years.

Reed said the proposed sale stems from the company’s decision to focus on data services in the B2B niche, although Variety has also had it share of troubles — in 2010 the publication cut eight staff positions, including two of its best-known writers.

Variety has the difficult job of competing in a niche market where free information is all too readily available. The site had 632,000 unique visitors last month compared with 5 million for HollywoodReporter.com, according to ComScore. Yet, the company was able to grow its revenue in the past year or so not only through online subscriptions, but also through conferences and events, with more than 30 events scheduled for this year. The company also created the Variety Insight data tracker, a data service that Reed is curiously willing to let go.

This makes Variety a mixed bet for any acquirer. Some best practices (including a better conversion page than this and more data-driven services) could allow the trade publication to reclaim its title as industry bible, read by industry leaders willing to pay for the information they need to be successful. But bad leadership is likely to devolve the iconic brand into a free website competing with other Hollywood sites covering both gossip and business news.

Posted by MinalB21
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Why Up to 84% of Membership Site Acquisition Deals May Fall Through

Date: November 15, 2011 Topic: Subscription Site M&As Tags:

According to data from a Harvard Business School publication, only 16% of signed letters of intent to buy a company in the US result in closed deals. The remaining 84% of M&A deals flounder. Why? DYP Advisors, a firm specializing in corporate and intellectual property law, says four due diligence mistakes are to blame:

1. Site sellers failing to do due diligence on the would-be buyer’s operations, cultural “fit” and finances.
2. Sellers who haven’t prepped their internal accounting and legal records properly prior to a sale.
3. Sellers who hide key information from would-be buyers.
4. Sellers who reveal company secrets to buyers before checking with their lawyer about what’s OK to reveal.

Having sold a membership site myself in 2007 and evaluated buying several others since, I can tell you that mistake number two (failure to prep internal records) is the biggest hurdle for small-mid-sized business owners. You’re so busy running your site that you never have time to clean up the paperwork mess.

BTW: How much is your membership or subscription site really worth if you want to sell it to another publisher? Check out our sister site’s special report on site valuations here.

Posted by Anne Holland
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Mobile App Sales to Rise 77% in 2011: The Goldrush Begins…

Date: May 4, 2011 Topic: Mobile, Subscription Site M&As Tags:

mobile app sales chartAccording to research firm IHS iSuppli, mobile app sales — including subscription apps, one-time fee apps, and upsales within apps — will rise this year to $3.8 billion.

I’d be inclined to trust this number, especially as Apple and Google’s Android just launched subscription app offerings this year. Recurring revenues are easier to count on growing steadily, for now, than one-time download sales.

For example, Popular Science already sells subscriptions on both platforms and is claiming nearly a quarter of a million dollars in revenues from them.  (They’ll be one of the publishers speaking at Subscription Site Insider’s exclusive webinar on how to market and price subscription apps later this month. Here’s a link to register if you’re interested.)

Although selling subscriptions via Apple, Google, et al has its downside — you can’t control the marketing as much as if you were selling directly and the platform takes a whopping 30% of revenues as their cut — at least the cash can be quick.  Popular Science sold 8,000 Apple iPad subscriptions in their first three weeks.  And, Apple pays publishers weekly.

If you don’t have a famous name brand, another way of quickly monetizing the app market is to launch your own app company and pray for an M&A.  Yahoo bought app IntoNow just a few weeks after it launched.  MergerNetwork has been running a listing for another app firm, which launched in November and now claims $65k in monthly “profits” (with new publishers one is never sure if what they call profits are actually just gross revenues minus Apple’s cut.)  Apparently this unnamed SF firm would happily sell their 11 paid apps for $700k if you’re interested.

Kind of reminds me of the AdSense goldrush of a few years ago when thousands of web developers were shoveling up hundreds of thousands of “content” sites with Google ads with no ambition beyond flipping them within weeks to would-be Internet entrepreneurs who wanted the proverbial easy income with little work lifestyle.

Posted by Anne Holland
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Founders of Whitestone Communications & Peachtree Capital Advisors to Speak at Online Publisher Site Valuations Webinar

Date: January 24, 2011 Topic: Subscription Business Model, Subscription Site M&As Tags:

I’m happy to announce the names of our two guest star presenters for Subscription Site Insider’s Jan 27th live webinar on Subscription, Membership & Paywalled Site Valuations

Baran Rosen, Founder & President, Whitestone Communications

Mr. Rosen has been an M&A leader in the publishing, information and training industries since 1986, and founded Whitestone in 1994. He carefully guides clients through the intricate process of successfully selling and buying businesses and product lines. His particular strength is in B2B media properties.

In addition, Rosen’s team publishes Whitestone’s annual Who’s Buying Whom on M&As in the publishing, information, Internet and training industries. Whitestone also has an extensive network of relationships with major venture capital and private equity funds as well as lending institutions to help them can readily source capital for Whitestone clients for acquisitions and investments.

John Doyle, Founder & MD, Peachtree Capital Advisors

Doyle’s background includes stints as an M&A and private investment advisor at both Veronis, Suhler, Stevenson (VSS) and Jordan Edmiston (JEGI), as well as the West Coast film and TV industry. He has closed more than 20 M&A transactions and holds his Series 7 and 24 licenses. His particular strength is in B2C digital media transactions and investments.

Note: Tickets are still available for this event, which includes live Q&A with Rosen and Doyle (and yes, you may ask your questions under the cover of anonymity). Ticket-holders get access to the live event plus an on-demand video version afterwards. If you are already a Subscription Site Insider premium member, your tickets have been emailed to you. Otherwise click here for details and to sign up if you so desire!

Posted by Anne Holland
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How Much Are Paid Subscription Sites Worth? Valuations & M&A Experts Reveal 2011 Pricing Trends

Date: January 20, 2011 Topic: Subscription Business Model, Subscription Site M&As Tags:

Ever wonder how much your paid content site might be worth to private equity investors or on the M&A marketplace? Or, what you should be doing today to prep your site for the highest possible valuation in the future?

You’re invited to attend Subscription Site Insider’s exclusive webinar next week on media site valuations, featuring experts from Whitestone Communications and Peachtree Capital. (Registration deadline: Thurs Jan 27th noon ET)

Here’s what you’ll learn:

- What sorts of multiples (X 12 month profits) are site valuations showing; and why are some sites worth much more than others?

- What types of sites are investors and business buyers most interested in

- Specific tactics site owners should take right now to increase their attractiveness to potential investors or buyers in the next 12 months.

- Values of B2B sites, information services, and online training services.

- How much B2C digital media sites are worth now to investors or buyers and who is looking to invest in them.

- How are hybrid-model sites with multiple revenue streams valued differently than plain vanilla sites?

**Plus, you’ll get to ask your valuation questions live during the webinar with total anonymity!

For all the details on this event click here.
(Again, please note the deadline of Thurs Jan 27th noon ET.)

Posted by Anne Holland
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