In today’s newsletter, I discuss the sale of a magazine to a travel company, a rise in bond yields and the blue bloods of college basketball.
MEDIA: Travel + Leisure Magazine
In the latest sign that the nation’s magazine business remains in the throes of change, Wyndham Destinations, a vacation timeshare company, said it is buying the magazine Travel + Leisure from the Meredith Group, a media company that owns a number of other magazines and local television stations.
Wyndham will change the name of its company to Travel + Leisure Co., and, interestingly, Meredith will continue to run the magazine itself — including editorial and advertising.
Pink's Bottom LineThe emergence of digital media in the last 20 years has decimated much of the once thriving traditional US magazine industry.
As part of Meredith’s plans to divest itself of some magazine titles, in 2018 the company sold Time to the CEO of Salesforce, and it sold Fortune to a wealthy Thai businessman.
Meredith’s sale of Travel + Leisure to Wyndham underscores the notion that potential acquirers of magazines these days aren’t necessarily media companies, and it also indicates that media companies simply might not value magazines much any more.
MONEY: Bond Yields
On the heels of the Senate run-off elections in Georgia, the yield on the 10-year Treasury note topped 1% today — that’s the first time the yield has hit that level on the 10-year since before the pandemic began.
For some context, at the beginning of 2020, the yield on the 10-year stood at around 1.8%.
Pink's Bottom LineWhile the yield on the 10-year is still very low by historical standards, it could be indicative of a change in sentiment likely brought about by the prospects of a Democrat-controlled Senate.
It might indicate that the markets now believe that more fiscal stimulus could soon be on the horizon — additional stimulus checks to individuals, for example — and that there might eventually be incremental inflation though that hasn't been seen to date.
However, should incremental inflation occur, that could lead to higher interest rates, which is what could be reflected in the 10-year yield's move above 1% today.
SPORTS: College Basketball
If you check out the college basketball rankings this week, it’s a bit startling to see the absence of traditional programs like Kentucky and North Carolina from the country’s Top 25.
In fact, Kentucky opened the season with a 1-6 record before winning its last two games and now stands at 3-6.
Duke, another perennial top team, is ranked 21st by the AP and 24th in the Coaches Poll. The Blue Devils have a record of 3-2, and they play Boston College tonight.
Pink's Bottom LineThe struggle of the powerhouses in college basketball is in direct contrast to the performance of the nation’s top college football teams.
In college football, traditional powers like Alabama, Clemson and Ohio State dominated this season.
That said, I expect that Kentucky, North Carolina and Duke will rebound strongly the rest of this season simply due to the talent on their respective rosters.
Additionally, I expect at least one of these programs to reach the Final Four in March, and potentially play for the national title.
Jeremy Pink is COO of Geniecast, a leading virtual content and experience company, and he is also currently an advisor to companies in the media and financial tech sectors. Jeremy is the former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there, and he is also a former CNBC television executive in New York, London and Singapore.
The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.
(Newsletter Editor: Karina Pink)