Jennifer Justice

Thrilled to share insights from our latest episode of Sweatpants To Suits, featuring Roy T. Bergold, former Chief Creative Officer at McDonald’s! Roy's illustrious career brought revolutionary changes to how brands connect with their audience through advertising. Dive into his journey with us for integral lessons on creativity, strategy, and innovation in marketing. 💫 Timestamps: 00:00 1950s Chicago, economy, rock and roll, challenges. 05:25 Immigrant heritage, love for music, and community. 08:19 Passion for advertising leads to scholarship opportunities. 11:01 Wanted to work for an ad agency in Chicago. 13:44 Longing for a forgotten complicated adding machine. 18:04 McDonald's allowed creative freedom for success. 22:39 Promoted to national advertising manager, ran global campaigns. 27:19 McDonald's executive reflects on success and challenges. 31:22 Developed contemporary toys, games, and partnerships successfully. 34:22 Old advertising methods can make companies successful. 37:08 Casting based on relatability and genuine connections. 40:13 The Big Mac's recipe made it successful. 44:07 Retired person lectures on McDonald's advertising. https://lnkd.in/gyzC4GuD

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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

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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.

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Building a Global Market: The NYCRA Entrepreneur's Journey This video explores the challenges and strategies of NYCRA entrepreneurs as they navigate the market's demands. Learn how to grow cautiously and organically while aiming for global success without repeating past mistakes. w/ @nycannabisretailassociation Britni & Jayson Tantalo Join us on this exciting journey! #Entrepreneurship #GlobalMarket #BusinessStrategy #NYCRA #MarketGrowth #CautiousScaling #OrganicGrowth #SuccessJourney #EntrepreneurTips #Innovation

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"Thank you to Gary Rubin for helping shape IPI's unique market position and go-to-market strategy. Former Executive Vice President at Cohen Media, his 100+ film acquisitions give him deep domain knowledge with distribution and sales. With Iconic, Investors find an alternative asset that is carefully devised to maximize their profits. Few finance companies understand the inner workings of the movie industry. Iconic now offers its investors access to one of the world's most profitable business models."

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WATCH NOW ☕ Perception Box: Corner Office - Episode 2 💼 🌟 The Next Chapter in the Short Form Series Co-Produced with The The Wall Street Journal and Unlikely Collaborators 🌟 🔥 In this episode, sit down with another trailblazing leader, Bob Stiller, to explore what lies beyond the titles, achievements, and success. 💭 What happens when you challenge the stories you tell yourself? ✨ This series dives deep into the Perception Box, unearthing insights that redefine leadership and personal growth. 👇 Watch now and share: What’s a story you’ve had to reexamine and rewrite about yourself? 💬 #Leadership 💡 #SelfDiscovery 🔍 #PerceptionBox 🧠 #WSJSeries 🎥

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Licensing has become a crucial growth strategy for businesses, offering diverse avenues for expansion and revenue generation. In today’s challenging environment, where many businesses struggle, licensing provides opportunities to partner with established brands, monetize intellectual property, and expand through franchising. Companies like Authentic Brands Group and Qualcomm have demonstrated the power of licensing in generating significant revenue. Meanwhile, franchising and publisher licensing have enabled businesses to scale and adapt to changing markets, proving that strategic licensing can be a key to thriving in a competitive landscape.   Tapping into Established Brands: A Faster Route to Growth While many entrepreneurs aim to build their products and brands from the ground up, licensing can offer a quicker path to expanding markets and boosting revenue. This strategy involves collaborating with established brands to utilize their intellectual property, such as trademarks or patents. For smaller businesses or startups, licensing can provide access to new customers, distribution channels, and markets that would otherwise take years to reach. Adapting to the Evolving Media Landscape Through Publisher Licensing As traditional media models face significant challenges, the publishing industry has turned to licensing as a vital strategy for survival and growth. This approach has proven transformative, enabling brands to leverage their intellectual property in new and profitable ways. For instance, Playboy, once heavily reliant on magazine sales, successfully transitioned to a licensing-centric model. By 2019, the company generated $1.5 billion in retail sales through licensed products, showcasing the lasting value of its brand beyond print media. Similarly, digital publishers like BuzzFeed have capitalized on licensing to diversify their revenue streams. BuzzFeed’s licensing revenue skyrocketed from under $5 million in 2017 to an impressive $260 million by 2019. This shift has allowed digital-native brands to reduce their dependency on traditional ad revenues and subscriptions, thereby ensuring a more stable financial future. To maximize the potential of publisher licensing, business leaders should start by identifying gaps in their content strategies. Partnering with publishers that offer complementary content can enhance a brand’s offerings, while exclusive licensing deals for high-performing content can create a competitive edge. Additionally, companies with unique and valuable content should explore opportunities to license their material to other brands, unlocking new revenue streams. Conclusion: Looking ahead, licensing is poised to play an increasingly critical role across various industries. In a global economy that is becoming more competitive, the strategic use of brand equity and intellectual property through licensing may be key to not just surviving but thriving.   

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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.

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Gerry Cardinale, through his firm RedBird Capital Partners, played a pivotal role in Skydance’s acquisition of Paramount Global. As part of a consortium led by Skydance, Cardinale helped orchestrate an $8 billion investment plan to take over Paramount, which included buying out National Amusements Inc. (NAI)—the parent company of Paramount—for $2.4 billion. This strategic move resulted in Skydance IG securing a 70% equity stake in the newly formed entity, while Class B stockholders retained a 30% stake. While the acquisition of Paramount Global has garnered significant media attention, less focus has been given to how this fits into RedBird Capital’s broader strategy of partnering with world-class storytellers to create impactful and meaningful content. Some notable investments by Gerry and his team include: -SpringHill Company: Collaborating with LeBron James, Maverick Carter, Jamal Henderson, and their team to amplify diverse voices and produce impactful stories that go beyond traditional media. -Artists Equity: Partnering with Ben Affleck and Matt Damon to establish a new model that provides artists with greater control and financial stakes in their projects. -All3Media: Investing in one of the UK’s largest independent production companies, led by Jane Turton and Sara Geater, to support global content creation. -Everwonder Studio: Supporting Ian Orefice’s venture to innovate digital-first content creation through premium short-form storytelling. (Ian is an Executive Producer of “Jeen-yuhs: A Kanye Trilogy”) -Skydance Media: Facilitating the transformative acquisition of Paramount to uphold a legacy of high-quality, event-level entertainment and innovative content development under David Ellison's leadership. These are just a few examples of how RedBird is working with creatives, and they only scratch the surface of their broader portfolio in sports and media. It wouldn’t be surprising if the next great story originates from a RedBird portfolio partner. For more on RedBird Capital Partners, subscribe to my free newsletter "The Bag" at www.newbagdrops.com

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Big Brands using OpenAI and Sora: Buyer Beware. You may be opening yourself up to legal exposure. A couple weeks ago, Toys"R"Us was the first major brand to produce a major spot using Sora and its undeniable power. That use flags a potential expansive new front in the generative AI copyright wars that are fast proliferating in the courts. And brands may soon find themselves swept up into that front. That threat alone slows down overall big brand adoption of Sora and generative AI and begs for a comprehensive copyright licensing solution. OpenAI, of course, finds itself at the center of AI’s copyright infringement storm. Media companies like The New York Times argue that OpenAI’s unlicensed scraping of their copyrighted works constitutes blatant infringement. For its part, OpenAI and Big Tech cry “all’s ‘fair use’ in love and war.” It’s all one big misunderstanding. But here's the thing. If the courts do ultimately come down on the side of the creative community on the input side of the question (i.e., the unlicensed scraping of copyrighted works – which I believe they will using a similar “commercial harm” rationale identified by the Supreme Court in the recent Andy Warhol case – then a credible argument can be made that big brands like Toys ‘R’ Us that use Sora are liable for infringement too. Companies can be secondarily liable for copyright infringement if they: (1) directly benefitted financially from the infringing activity; (2) had the right and ability to supervise or control that activity; and (3) failed to exercise that right and ability. That’s not me talking. That’s the 9th Circuit Court of Appeals’ 3-part jury instruction on the subject. And that’s arguably the case with Toys ‘R’ Us and Sora. First, Toys ‘R’ Us clearly benefitted financially from the arguably infringing activity of using Sora to create its ad. The global press talked about it everywhere. Element 2 is also satisfied — Toys ‘R’ Us had the ability to supervise (the ad agency) or control the making and showcasing of its ad. And then, to fulfill the 3-part test trifecta, it failed to exercise that right and ability. To be clear, OpenAI undoubtedly indemnifies users like Toys ‘R’ Us for any damages caused by their use of Sora. But indemnification isn’t the same thing as absolution (or legal risk mitigation). A finding of infringement is still infringement, and this more than theoretical risk is enough for many big brands to pause before putting their pedal to the AI metal. All this legal uncertainty and undefinable risk dampens the appetite to go full bore on using these generative AI tools right now. So it’s in OpenAI’s and Big Tech’s interests to solve these fundamental copyright licensing issues fairly and fast — with new comprehensive licensing schemes that recognize IP’s transformational value. SUBSCRIBE TO MY WEEKLY NEWSLETTER to learn more https://lnkd.in/gtsk8AH8 #media #entertainment #branding #marketing #advertising #agencies #generativeAI #sora

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Quote - “Once the JV launches, the JV defendants have no reason to take actions that could allow for the emergence of direct competitors,” Garnett wrote. ‘Quite the opposite: the multi-year monopolistic runway they have created for themselves will provide powerful incentives to thwart competition and hike prices on both consumers and other distributors. But even if the JV defendants swear that such price-hiking and competition excluding will not actually occur (though, as discussed below, there is good reason to believe that it will), one purpose of antitrust injunctions is to prevent anticompetitive incentives from forming in the first place so that American consumers do not have to simply take their word for it and hope for the best. #Trust/#Law

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