Are Large African-American Owned Companies Attractive Takeover Candidates?
Magazine, for a hefty, though secret, sum. (Initial reports indicate that the deal may have been valued at $170 million.) As a respected African-American publication and a household name, Essence Magazine became an attractive acquisition target for a mainstream media conglomerate. No deal seemed to indicate the power of the African-American brand better than the sale of Black Entertainment Television (BET) in 2000 to media giant Viacom for the purchase price of $3 billion. The two deals took two established companies targeting the African-American consumer out of the hands of black ownership and control and placed it firmly under the aegis and ownership of shareholder-driven conglomerates. According to Peter Roberts, an associate professor of organization and management at Emory University’s Goizueta Business School, the success of the two companies indicates there is competitive advantage in being “cultural entrepreneurs.” He likens their value to that of Ben & Jerry’s Ice Cream, noti
