Michelle Landy

Night bought Bottle Rocket Management. Yup, more M&A consolidation amongst talent rep companies! BIG congrats to Chas Lacaillade, BRM’s founder and a close friend of mine. Chas is a shrewd operator, and over the years I enjoyed watching him build a high-performing creator management company. Awesome to see him pick a strategic partner that aligns with his plan for future growth and improved client servicing. RockWater Industries served as financial advisor to BRM. I therefore can’t go into deal specifics due to the NDA between our companies. Let's break it down… ---TARGET: Bottle Rocket Management--- OVERVIEW • Talent management firm for digital content creators • Founded 2015 by Chas Lacaillade • Bootstrapped, no outside capital • Focus on YouTube creators • Reps ~40 talent clients • Based in Austin, TX TALENT HIGHLIGHTS • Austin Evans • BroScienceLife • JerryRigEverything • UrAvgConsumer ---BUYER: Night--- OVERVIEW • Next-gen representation platform for artists • Founded 2015 by Reed Duchscher • 75-100+ team per LinkedIn • Reps 100+ talent clients • Based in Austin, TX BIZ UNITS • Talent - management, focused on digital creators being entertainers and entrepreneurs • Studios - content studio, helps digital creators create and package shows for TV, streaming • Labs - venture studio, pairs operators with creators to build companies e.g. Feastables • Capital - TCG-backed fund to invest in / acquire profitable creator-led businesses • Ventures - early stage venture fund, focused on tech OPERATING HIGHLIGHTS • Reps world’s largest Twitch streamer, Kai Cenat • First manager of MrBeast, helped catapult his growth • Launched Feastables in 2022, est $100M+ 2024 revenue CAPITAL MARKETS HISTORY • 2022 raised an est high 7 to low 8 figures from TCG • 2022 raised $100M from TCG for Night Capital • 2023 bought mgmt co LFM • 2024 bought The Roost Podcast Network ---DEAL DETAILS--- OVERVIEW • Announced 11.25.24 • Deal terms undisclosed DEAL ORIGINS • Night and BRM leadership have known one another for years • Lacaillade and Night President Ezra Cooperstein both worked at Fullscreen, an early YouTube MCN VALUE PROP • Bring a top digital manager into Night’s leadership team • Deliver larger and more exciting opportunities to BRM clients • Scale talent roster and offerings for Night’s brand and client partners • Scale Night’s seasoned digital talent team via BRM team additions • More leverage to recruit more digital-native clients ...I'll write more about the deal in my Friday M&A newsletter, signup link in comments 👇 -- I'm the founder of RockWater. We do M&A and strategy advisory for media, agencies, and creator economy. My DMs are open.

3

1 Comment

Is Paramount's Tech Transformation Just a Pipe Dream? In the ever-evolving landscape of media, David Ellison’s announcement about transforming Paramount into a tech powerhouse stirred quite the conversation. Including by me: https://lnkd.in/eBsi2xbi But as we dive deeper, several challenges emerge, casting shadows of doubt over this ambitious pivot. #1. Financial Feasibility With Paramount grappling with substantial debt and pressing financial obligations, notably hefty NFL payments, the costs of attracting top tech talent become a significant concern. Can Paramount realistically afford this tech overhaul amidst economic uncertainties and a struggling stock? The talent war isn't won on ambitions alone, especially when competitors like Google offer more stable havens. #2. Creator vs. Coder Paramount’s tech ambition, while necessary, seems at odds with maintaining the creator-friendly environment Ellison dually promised. In an era when interest rates have climbed, balancing tech innovation with creative freedom is a tightrope walk. Remember, even Netflix, once a haven for creators with its blank checks during #ZIRP, is tightening its purse strings. How can Paramount navigate these waters without the cushion of a tech giant's capital or rising stock prices? 3. Building vs. Buying Tech Infrastructure David Ellison’s plan for Paramount involves a substantial commitment to developing in-house tech capabilities, focusing on cloud services, AI, user interfaces, recommendation algorithms, and ad-serving technologies. This approach aims to differentiate Paramount from competitors and enhance user experience. However, the tech sector’s history suggests leveraging established third-party platforms could be more cost-effective and reliable. Giants like Disney have successfully integrated platforms like BamTech, while HBO initially utilized external technology before transitioning. AMC Networks similarly relies on Brightcove for streaming technologies. The pivotal question for Ellison is whether the potential benefits of custom-built solutions justify the investment and risk, especially when patching together proven third-party solutions might yield quicker and more economical results. #InEssence... These challenges are monumental, yet not insurmountable. As we watch Paramount’s narrative unfold, one thing is clear: transitioning into a tech entity is more than just a strategic pivot—it’s a gamble on the future of entertainment itself. Thoughts? #Paramount #StreamingWars #MediaTech

4

Fans, investors, nerds, collectors, frens 👀👇🏻 This is a great episode Howard Lindzon and Trends with Friends put together with Darren Rovell. The gamification of memorabilia and stories that Darren shares are just great! Well worth a watch if you enjoy collecting, like stories about maverick traders or just want to watch a pro spilling a little tea. #collectors #markets #investing

4

2 Comments

Here's why storytelling is a skill we desperately need to cultivate in legal ops: Technology and data are absolutely foundational, but they can only get us so far. To get to Legal Ops 3.0, we need to elevate particular talent - people who can combine analytics with creativity to draw up meaningful metrics and data narratives for those in the C-suite. This is where we make the actual business impact. This is where we unlock the real potential of our work. Beyond the static metrics and data we all work with, this is how we move onward and upward. #LegalOps #LegalOperations #Storytelling

171

23 Comments

Ziff Davis acquired CNET for over $100M. The new owner is betting on more digital M&A with its $670M warchest. That price is down from $1.8B CBS paid for it in 2008. And $500M current owner Red Ventures paid for it in 2020. Let’s break it down👇 ---SELLER: CNET--- • Tech news and reviews site • Drives traffic via SEO • Monetizes via affiliate links • 38M visitors in Jun 2024 • Launched 1994 ---M&A HISTORY: CNET--- • 2002 CNET Networks acquired tech publisher Ziff-Davis Inc. (different co) and ZDNet for $1.6B • 2008 CBS acquired CNET Networks for $1.8B • 2020 Red Ventures acquired CNET for $500M ---SELLER OWNER: Red Ventures--- • PE-backed marketing-turned-media company • Provides client services, owns brands, makes investments • Portfolio incl Bankrate, Lonely Planet, Points Guy, others ---BUYER: Ziff Davis--- • Vertically focused digital media and internet company • Brands incl PCMag, Mashable, IGN, Retailmenot, Lifehacker • 2010 CEO led buyout of ZD w/ Great Hill Partners • 2012 ZD sold to J2 Global, went on M&A spree • Founded 1927 as mag publisher ---FINANCIALS: Ziff Davis--- Stock price as of 10:10AM ET on 8.12… • Stock price: $41.64 • Mkt Cap: $2B • Down 38% YTD • Down 39% YoY 1H 2024 financials as of 6.30.24... • Revenue: Up 0.3% to $635M • Adj EBITDA: Down 2% to $197M • Adj EBITDA margin: Down 0.7 pps to 31% • FCF: Down 27% to $73M • C&CE: $687M ---DEAL DETAILS--- • Undisclosed • Will close in 3Q 2024 ---DEAL VALUE PROP--- • Audience is attractive to tech advertisers • Target consumers/businesses navigating tech/telecom purchases • Part of ZD digital media rollup strategy ---WHAT ELSE I FIND INTERESTING--- I'll write more about the deal in my newsetter this Friday. I'm curous to dig into financial performance trend of Ziff Davis, which we can see in public filings. Of note, its 1H 2024 performance has declined VS 1H 2023. Wonder what the key macro VS micro drivers are. I want to better understand viability of its digital media rollup strategy, and future M&A strategy, particuarly since it has $670M of cash on hand and CEO Vivek Shah said he wants to keep doing deals. --- I'm the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. My DMs are open.

16

2 Comments

New All That Yazz! Artificial Intelligence is transforming the creative landscape, but what does that mean for artists, filmmakers & creatives. Our latest episode was a live discussion at BAI Heatseekers, with venerated lawyer Kevin Smith, dives into the legal implications of using AI tools. If you want to better understand how AI works & what AI might mean for you as an artist, publisher, filmmaker, this discussion is for you! All That Yazz is available to listen on your preferred streaming platform: https://lnkd.in/dFuMT_qd. Here's a sneak peak from the episode

5

Where can a large PE fund write a $100-150M check into the creator economy, and get good ROI? That’s a question I’m hearing more and more often. I have some ideas, but honestly I think that’s a challenging proposition at this stage of the market. It’s prompted me to repost my analysis of creator x media fundraisings. 👉🏼 https://lnkd.in/gF3EJSEY What do you think? Where can a check of that size solve a market problem, and generate good return? — I’m the founder of RockWater Industries. We do m&a and strategy advisory for media, agencies, and crestor economy. My DMs are open.

34

48 Comments

When Antonio first reached out about joining the Happiness Camp as a speaker, I have to admit, I felt apprehensive. I've always approached HR through the lens of organizational design and behavior, steering clear of what HR is often known for—fluff. However, I leaned in with curiosity and was genuinely impressed by Antonio’s vision. After researching more online, I became even more inspired by the work he and his team are driving. Work doesn't have to be hard, yet we often make it so. Burnout is affecting everyone, from executives to middle managers to frontline staff. At the heart of this burnout is a disconnect: those on the front line, who are best equipped to solve challenges, aren't being seen, heard, or recognized. Words like innovation, inclusion, and diversity have become buzzwords and performative initiatives. I am so grateful and humbled to be offered this chance to share my story. As a female Iranian refugee who has lived and worked in 13 countries, I’ve gained a unique perspective on creativity and innovation in the roles I’ve held. If we don't understand how we should be included, we won’t be. Thank you, Antonio, for extending this invitation and offering a chance to share my story and learnings. #HappinessCamp #Portugal #Innovation #Inclusion #Diversity #Burnout #HR #OrganizationalDesign #Creativity #Leadership #WomenInLeadership #RefugeeVoices #GlobalExperience

34

5 Comments