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Crain's NY: Vibe and BlackBook merge
January 6, 2012
The media companies reach different audiences, but the deal—backed by Earvin “Magic” Johnson—is about online and mobile extensions.
By Matthew Flamm
Vibe Holdings has merged with BlackBook Media, Vibe's owners announced Friday. The merger puts urban lifestyle titles Vibe and Uptown under one roof with the hipsterish BlackBook magazine.
Though the titles reach different audiences, the deal is about the brands' online and mobile extensions, and the technology that BlackBook Media sister company Access Network Co. brings to the table. The publishers use the company's content management system to connect their users with restaurants and other venues, which helps drive traffic and bring in advertising.
"We're passionate believers in the future of technology-driven media companies and the ability to leverage online, mobile, print and local content through premier brands,” Earvin “Magic” Johnson, a partner in the Yucaipa Johnson Fund, said in a statement. Yucaipa Johnson and InterMedia Partners own Vibe Holdings. “The technology we acquired as part of the Access Network will serve as a very important piece to enable us to reach consumers.”
The former basketball-star-turned-business-mogul is partners with Ron Burkle in the fund, which joined InterMedia as owner of Vibe Holdings a year ago. Mr. Johnson is also chairman of Vibe Holdings. Len Burnett, publisher of Vibe during its heyday as an urban music magazine, and Brett Wright, will remain co-CEOs of the Vibe Lifestyle Network.
Vibe Holdings has been using Access Network's technology for the past two years. The deal gives the publisher a chance to develop technology specifically for its own uses and to profit from Access Network's licensing business. Access Network currently licenses its platform to roughly 100 brands and publishers—which helps pay for the continuing investment in the technology.
“This will be the catalyst to make the [Vibe and BlackBook] brands stronger,” said Ari Horowitz, CEO of the Access Network, in an interview. Mr. Horowitz will also be CEO of the merged operation, which will be called Vibe Media. Down the road he sees local deals being part of the mobile offering, with Access Network taking a piece of each transaction.
He also expects Yucaipa Johnson to add more media properties to the business. “To do this right, you need to have more brands you own and operate and can use to leverage the technology,” Mr. Horowitz said. “And then you license the platform to other publishers so you can reinvest in the technology.”
Terms of the deal were not disclosed.
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