I talk digital media, fast food and NBA basketball in today’s newsletter.
MEDIA: Tough Times for Digital Media
Here’s yet another sign of the struggles of the digital media industry.
The Wall Street Journal is reporting that Quartz, a digital business news publication started by The Atlantic in 2012, is already up for sale again, this time by its new owners, Japan’s Uzabase, who have owned Quartz for just two years.
Uzabase purchased Quartz from The Atlantic in 2018, and paid $86 million for the business, according to The Wall Street Journal.
Pink's Bottom LineIn the past two years, Quartz’s revenue reportedly has declined sharply, and the company has been forced to make layoffs.
As Uzabase navigates a potential sale of the company, look for Quartz to sell for far less than the $86 million that Uzabase paid for it, and for Quartz to get bought potentially by private equity, not by a media company.
MONEY: McDonald’s Sales
As the impact of the coronavirus pandemic ravages much of the restaurant industry, McDonald’s is reporting relatively decent sales numbers.
While the company reported global sales fell 2.2% last quarter compared to the same quarter last year, same-store sales in the US actually increased 4.6% last quarter compared to 2019.
Pink's Bottom LineMcDonald’s says its same-store sales in the US grew thanks in part to popularity of its drive-thru windows and to sales promotions, notably those in September.
Unlike McDonald’s, smaller restaurants in the United States generally don’t have the benefit of drive-thru windows or the financial muscle of deep marketing budgets.
As such, I suspect smaller restaurants in the US will struggle to recover or even survive while the bigger restaurant chains, like McDonald’s, will weather the impact of the pandemic and likely even emerge stronger.
SPORTS: The King’s Strength
When the Los Angles Lakers take on the Miami Heat in Game 5 of the NBA Finals tomorrow night, LeBron James will be playing in his 259th career playoff game.
Considering that the NBA regular season is 82 games, that means James has played the equivalent of more than three additional regular seasons in his playoff career.
That’s a truly remarkable accomplishment, and it’s a testament to his durability.
Pink's Bottom LineWe take it for granted when he plays 40 or more minutes or scores 30 or more points in a playoff game.
That’s just how good and how durable he has been in the post-season over the years.
As for tomorrow night’s game, I expect the Lakers to defeat the Heat and win the NBA championship four games to one — with James leading the way.
It will be his fourth NBA title with his third different team in his 17 years in the league.
Jeremy Pink is former CEO of private-equity backed Broadcast Sports International where he led the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore. Jeremy currently serves as an advisor, consultant or board member to companies in New York, London, Hong Kong and Dubai in the media, technology, sports and financial tech sectors.
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