In 2018, billionaires buying news outlets is not uncommon. They have the money; they want the authority. Why not? On Monday, headlines of Time magazine sold to Salesforce (NYSE:CRM) hit and consumed the market. And for a good reason, too.
Time Magazine Sold to Salesforce: September 17th, 2018
Eight months ago, Meredith Corp. (NYSE:MDP) finalized its purchase of Time Inc. Now the publisher has agreed to sell the magazine to Marc Benioff, who is the co-founder of Salesforce, for $190 million.
People are saying we should have seen this coming. Benioff, 53, has always come across as someone “who wanted to be more than another CEO,” said Dan Colarusso, Executive Editor, Digital at Reuters.
Overall, the news of Time magazine being sold to Salesforce is positive. Benioff even said he is “investing in a company with tremendous impact on the world.” However, there are a few negatives, which might explain why the Salesforce stock is currently down nearly 1.15%.
Here’s the problem: even though Benioff is optimistic about the audience and growing business of Time magazine, the publication has still struggled as of late. Why? Mostly because of declines in print advertising.
Still, there’s more optimism around the Time news than pessimism. Many are saying that if Benioff puts serious money into Time magazine, a major transformation could be on the horizon.
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The Buying Process
If all goes as planned, the proposed sale will close within 30 days. Note that Benioff and his wife, Lynne Benioff, will be purchasing Time magazine as individuals, which means the agreement has no connection to Salesforce, which is a cloud software company.
The Takeaway
Time magazine is being sold, but was it a smart move? Personally, I think, if done well, Benioff could transform the magazine. However, if the buyer gets lazy, the magazine could suffer even more than it already has in the past few years.
Do you agree?
Featured Image: Flickr
