Wenner Media Sells 49 Percent Stake in Rolling Stone to BandLab

This weekend Wenner Media, the parent company of Rolling Stone magazine, announced it would sell a 49 percent stake in the publication to BandLab,

Subscription News: Wenner Media Sells 49 Percent Stake in Rolling Stone to BandLab

Source: Rolling Stone

This weekend Wenner Media, the parent company of Rolling Stone magazine, announced it would sell a 49 percent stake in the publication to BandLab, a cloud-based platform for musicians, owned by Kuok Meng Ru, son of Chinese billionaire Kuok Khoon Hong, reports Forbes.

According to Forbes, Wenner Media will retain majority ownership and maintain full editorial control of the magazine. No price for the sale was disclosed. Wenner Media also publishes Us Weekly, Men’s Journal and Flexel, but none of them are part of the sale. According to Billboard, Rolling Stone has 22 million digital users and 12 million print readers.

“It’s a big moment,” said Gus Wenner, head of digital, in a phone interview with Bloomberg. “There is a great opportunity to take that brand and apply it into new and different areas and markets.”

Subscription News: Wenner Media Sells 49 Percent Stake in Rolling Stone to BandLab

Source: Rolling Stone

Started in 1967 by Jann Wenner and Ralph J. Gleason, Rolling Stone magazine is known for its iconic covers and pop culture and entertainment content featuring everyone from Bob Dylan, Jimi Hendrix and Patti Smith to Joe Biden, Kanye West, and stars of The Voice. In recent years, it has developed a reputation for investigative stories and exposés, but has also found itself in legal trouble as a result.

For example, in November 2014, Rolling Stone published “A Rape on Campus,” an investigative story about the brutal gang rape of a college freshman at the University of Virginia. As the story unfolded, it became clear that it was not entirely factual or balanced. Rolling Stone eventually retracted the story, but stood behind its handling of the story from an editorial perspective.

According to Columbia Journalism Review, Rolling Stone is now facing three defamation lawsuits, including one filed by the UVA chapter of Phi Kappa Psi, a fraternity named in the article, who is suing the magazine for $25 million in damages. It is not known if Kuok would bear any of the financial responsibility in the event of potential judgments against the magazine.

Subscription News: Wenner Media Sells 49 Percent Stake in Rolling Stone to BandLab

Source: Rolling Stone

Erik Sass of MediaPost’s Publishers Daily reports the sale will facilitate Rolling Stone’s global expansion, specifically into Asia. Kuok will lead Rolling Stone International out of Singapore. It already publishes overseas editions in Australia, India, Indonesia and Japan. Though BandLab will not have an editorial role in the magazine, it will develop live events, merchandising and hospitality, says Bloomberg.

“Our strategic partnership is focused on brand extensions into new areas we haven’t quite fully been in the past, such as merchandising, live events, hospitality – they are areas we have dabbled in but never really seriously gone after,” said Wenner. “Meng and his team bring a great deal of understanding, infrastructure, know-how and act in that extraordinarily exciting market of Asia and beyond.”  

Insider Take:

Rolling Stone’s history and brand recognition have made the magazine an attractive acquisition, and this agreement seems to be mutually beneficial. Wenner Media will get an infusion of cash which it will need to protect its remaining assets should the legal troubles manifest into reality, Rolling Stone can expand into growing markets with additional branding opportunities, and Kuok can leverage the relationship to grow exposure for BandLab while making money on his investment. As brands and publishers straddle the divide between print and digital, we anticipate more deals like this one.

Up Next

Register Now For Email Subscription News Updates!

Search this site

You May Be Interested in: