Matt Saincome knows that compared to many of the startup acquisitions we talk about on TipsClear, selling a website for just over $ 1 million (mostly in cash, with a little bit of stock) is not a huge deal.
"But in the media world of punk comedy? Whoo boy! " he said.
Saincome is happy to make fun of himself - he's the co-founder and CEO of a satirical punk news website, after all - but he also seemed to be really proud of what he built with The Hard Times. He never raised external funds and, although there have been offers of acquisition in the past, he was always afraid that they would threaten the voice of the site.
"I've always been the financial safety net," Saincome told me. Yet at some point, "it started to become irresponsible."
It is therefore fortunate that there is some financial windfall (not to mention health care and benefits) for himself, his co-founder and editor Bill Conway and their editorial team, as well as 'a raise for freelancers. He also suggested that the acquisition would allow The Hard Times to invest more seriously in its editorial strategy, for example by developing its podcast network.
"If you like The Hard Times, it will just be The Hard Times on steroids," he said. "It's about the same direction, but better and more secure."
The absorbing company is Project M Group, a digital media and e-commerce company founded in 2016 that also acquired Revolver Magazine and Inked Magazine.
Here is how the founder and CEO Enrique Abeyta presented the model of the M project: "We go out and acquire existing multimedia properties with an audience, and we reinvigorate or revive or put capital behind to increase these audiences. Then we link that to a vertically integrated e-commerce platform. "
After all, it's no secret that many online publishers have struggled to make the digital advertising model work. And since Revolver focuses on heavy metal and rock and Inked focuses on tattoos, there are natural trade opportunities - for example, if you're reading an article on Metallica, you can also buy a T-shirt Metallica.
At the same time, Abeyta stressed the importance of authenticity in the publications that Project M acquires, and said that after the acquisition, they no longer become companies.
"I am a tattooed Mohawk guy running this business outside of my home in Cave Creek, Arizona," he said. "We are the least corporate thing on planet Earth ... Our whole atmosphere when we join these entrepreneurs, we want to work with the entrepreneur and the brand."
So the whole Hard Times team, including Saincome, will stay involved. At the same time, the site's former parent company will continue to own and operate the gaming and related technology site, Hard Drive.
Saincome said it would also continue to use OutVoice, a separate start-up that creates independent payment tools. In fact, one of the results of the agreement is that all M Project publications will use OutVoice.
"My role at Hard Times is going to be the visionary and brand-building type," he said. It should free up a lot of his time and energy from worrying about day-to-day business concerns, and he promised, "I'm going to take that energy and put it back directly into OutVoice. . "
