February 29th 2024.
According to a report from The Wall Street Journal, Essence Ventures LLC, the parent company of Essence Magazine, is currently engaged in discussions to acquire Refinery29. This potential acquisition has been gaining a lot of attention lately, with industry experts speculating on the implications it could have for both companies.
Essence Ventures is led by Richelieu Dennis, who is also the co-founder and chair of Group Black, a media group that focuses on promoting ad spending with Black-owned media. If the deal goes through, Essence would greatly expand its presence in the female-oriented digital market, particularly among younger audiences. This could bring in a significant increase in advertising revenue for Essence, while also saving Refinery29 from its current financial struggles.
In 2019, Refinery29 was acquired by Vice Media Group for a whopping $400 million. However, sources say that if the Essence deal is finalized, it will likely be for a much lower price. This is due to the decline in profits that Refinery29 has experienced in recent years, with a decrease of $20 million in 2022 alone, mainly due to a decline in website traffic and advertising revenue.
Founded in 2005, Refinery29 quickly became a powerhouse in the media world, especially among millennial women. However, the company has faced its fair share of controversies as well. In 2020, a group of Black and Brown employees and freelancers took to social media to share stories of racial discrimination, including pay disparities between people of color and white employees.
The news of Essence's potential acquisition comes on the heels of Vice Media Group's recent announcement of massive layoffs and the discontinuation of content publication on its website. Vice, once a thriving media entity, has been struggling financially in recent years. In 2023, the company even filed for bankruptcy and was then acquired by Fortress Investment Group, one of its lenders. With the focus now shifting to other Vice companies, such as their TV network, production studio, and ad agency, Virtue, the online publication aspect of the business is being discontinued.
In the midst of all this news, another significant development has taken place at Essence. Michelle Ebanks, the CEO of Essence, has announced that she will be stepping down from her role. It remains to be seen how this leadership change will impact the potential acquisition of Refinery29 and the future of both companies.
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