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 Media OverviewThe proposed media portfolio is focused on print and radio, two segments which offer considerable opportunities for profitable growth. Acquire One will pursue a strategy that integrates the delivery of content through these mediums, leveraging new delivery technologies, to maximize operational efficiencies and revenues produced from advertising. Also, Acquire One will analyze and assess the potential of adding television as a third media delivery mechanism. Acquire One will strive to increase political awareness and influence for African Americans and become a catalyst for national and global economic development. Acquire One will concentrate on acquiring African American-owned newspapers with significant brand equity. According to the National Newspaper Publishers Association, there are over 200 Black community newspapers in the United States with over 15 million readers. The advertising revenues for these newspapers totaled $600 million in 2005. African American newspapers face significant issues including eroding readership, poor quality, irrelevant content, high operational costs, and decreasing advertising revenues. Acquire One will integrate the delivery of content, leveraging combined mediums and new communication technologies and deploy information systems will be used to centralize and share back-office functions. This strategy is expected to yield increased circulation, which leads directly to an increase in advertising revenue. Additionally, acquiring multiple newspapers will provide economies of scale in printing and distribution, which account for more than 30% of operational cost. The resulting operational efficiencies can be as high as 50%. Acquire One has skilled journalists and business professionals with track records of successfully executing and realizing the efficiencies of this type of operational strategy. Radio Acquire One will acquire and integrate AM radio stations with newspapers to deliver distinct content to the market. There are 13,748 radio stations in the United States, of which 4,759 are AM stations. Advertising levels for all stations have been relatively flat over that past three years with estimated advertising revenues of $22.8 billion. This presents both a challenge and an opportunity for growth. Competition from Internet and satellite-based radio is eroding listener-ship levels for AM radio stations. High operational costs, along with poor programming decisions have negatively impacted revenue performance of a number of AM radio stations. An integrated content delivery strategy, combining a branded African American Newspaper and AM radio stations should reach highly differentiated and affluent African American niche markets. Acquire One has skilled leadership with extensive experience in successfully operating profitable radio stations. ©2007 Acquire One, LLC |
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