Discovery Buys Golf Digest And PGA Tour To Sell The Ads: A New House Organ Is Born?
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It’s certainly pleasing that Golf Digest has been saved from extinction by Discovery and that many golf writers will remain employed, but it’s hard to see how the PGA Tour taking over sales for the magazine and website is a positive.
Keith Kelley reported on Page Six (link not live) that Discovery paid $30 million for Golf Digest, Golf World and assorted elements after a “bidding war” with NBC/Comcast. Multiple sources tell me, however, that no bid was even made by Comcast.
The $30 million figure noted by Kelley, if his reporting is accurate, marks a steep plunge from the $430 million Conde Nast paid for Golf Digest in 2001. But they were also buying a robust monthly then with millions in lucrative monthly ad sales and a staff full of must-read writers.
The purchase price also looks particularly paltry given Discovery CEO David Zaslav’s pay the last two years: $42.2 million and $129.5 million in 2019.
Most surprising, however, was this line late in Sam Weinman’s GolfDigest.com story announcing the new “global editorial powerhouse”:
The Discovery acquisition will also feature the introduction of a new sales structure in which Golf Digest and the PGA Tour will combine to create a one-stop digital network in which advertisers can engage with fans across Golf Digest, PGA Tour, and GOLFTV platforms.
It seems hard to imagine any other scenario where the PGA Tour driving and selling the content by Golf Digest is a plus. Some fans may like that this keeps the operation viable, but I’m guessing most golfers wanting coverage of the game will be disappointed in where this leads.
Needless to say, this will also radically re-shape Golf Digest’s coverage of the PGA Tour and the business of golf.
For Immediate Release (Warning, b-speak is flowing!):
FOR IMMEDIATE RELEASE
Discovery, Inc. Acquires Golf Digest From Condé Nast
Creating the largest digital golf media business in the U.S. in partnership with the PGA TOUR
Golf Digest’s multi-platform content to be distributed globally on GOLFTV streaming service
Golf Digest Chairman and Editor-in-Chief Jerry Tarde to Join Discovery Golf
NEW YORK, May 13, 2019 – Discovery, Inc. (Nasdaq: DISCA, DISCB, DISCK) announced today it has acquired Golf Digest from Condé Nast. Golf Digest is the world’s No. 1 golf media brand and will extend Discovery’s global golf media business to the U.S. market through Golf Digest’s multiplatform distribution and reach.
The acquisition creates a powerful programming engine for GOLFTV powered by PGA TOUR, adding world-renowned Golf Digest content to a platform that is built on competition coverage from the PGA TOUR, European Tour, and the Ladies European Tour, as well as the Masters Tournament in select territories outside the U.S. and Discovery’s exclusive global content partnerships with Tiger Woods, winner of 81 PGA TOUR events and 15 major championships, and Francesco Molinari, winner of 10 pro events worldwide and the reigning Open champion.
The addition of Golf Digest boosts Discovery’s global golf ecosystem with a leading platform in the U.S., and will now reach golf fans with everything associated with the game, including instructional videos, equipment advice, course rankings, travel destinations, online bookings and more.
Additionally, Discovery and the PGA TOUR are expanding their groundbreaking 12-year strategic partnership with a new content and sales relationship in the U.S., among other initiatives. The organizations will join forces to create the largest digital network in golf with a one-stop activation platform now including Golf Digest, for advertisers to engage with fans and players, across a full suite of editorial coverage, live and on-demand video streaming, digital, social, print and branded content opportunities. The current Golf Digest sales teams will continue to be responsible for ad sales during a transition period until the Discovery / PGA TOUR sales integration is complete.
David Zaslav, President and CEO of Discovery, Inc. said: “Golf Digest is a world-class brand that has become the ‘go-to’ authority for millions of golf enthusiasts, professional players and global advertisers. It’s a natural strategic fit with Discovery’s goal to be the leading golf media platform in the world through our investments with the PGA TOUR, the European Tour and our partnership with Tiger Woods. We wanted to bolster GOLFTV’s international offerings with Golf Digest’s award-winning journalism, broad consumer reach and deep content library while also creating the largest U.S. digital golf business with Jay Monahan and the PGA TOUR. They have been great partners, and we are excited to deepen the opportunity to bring these amazing players and all of their terrific play to more people on more devices in every market in the world.”
Rick Anderson, Chief Media Officer, PGA TOUR, said: “We’re thrilled to deepen our partnership with Discovery, as well as Golf Digest, which has been an official marketing partner of the PGA TOUR since 2006. By combining our assets in the U.S., we’re now able to offer the most robust digital content and product offering for fans, golfers and TOUR partners. The new PGA TOUR / Golf Digest digital network will be the single largest golf network offering unrivaled breadth and depth of content across platforms.”
Discovery will seek to optimize its exclusive global partnership with Tiger Woods across both Golf Digest and PGA TOUR platforms. GOLFTV is collaborating with Woods on a range of content, such as deep-dive instruction to help players improve their game, which began filming last month, and exclusive access to his tournament preparation. The unique collaboration offers an authentic look into the life, mind and performance of the game’s ultimate icon.
Tiger Woods said: “This is an important step in enhancing and expanding the U.S. and global reach of Discovery and GOLFTV. It gives me another platform to tell my story directly to fans and makes my partnership with Discovery even stronger. This acquisition, along with what Discovery and GOLFTV have already done with the PGA TOUR, is great for the game of golf.”
Alex Kaplan, President and General Manager, Discovery Golf, said: “This is a big deal for Discovery to add Golf Digest to our golf portfolio. Adding Golf Digest to GOLFTV and our existing PGA TOUR, European Tour, Tiger and Francesco content will be a big win for the sport. We are offering something unique, whether you’re a fan, player, viewer, brand or advertiser. We can utilize the strengths of both Golf Digest and our burgeoning GOLFTV platform, establishing a global editorial powerhouse delivering content across all platforms to engage and inspire millions of passionate golf fans around the world.”
Golf Digest’s award-winning editorial content, including news, instructional videos, and rankings, as well as tentpoles such as ‘100 Greatest Course Rankings’ and its annual ‘Hot List,’ will drive engagement for GOLFTV around the world, provide opportunities for Discovery to leverage its golf content in the U.S. and bring more exciting opportunities to partner the PGA TOUR and all the world-class players.
Discovery will seek to leverage its global scale, with reach into 220 markets and territories, to further grow the Golf Digest brand around the world. Golf Digest, which earns nearly half of its revenues from digital advertising, will continue to publish a U.S. monthly print magazine and Discovery will assume the global licenses for editions serving nearly 70 countries.
Golf Digest’s editorial team will join Discovery Golf under the continued leadership of Jerry Tarde, as Editor-in-Chief, Golf Digest, and Global Head of Strategy and Content, Discovery Golf. In addition to overseeing the world-class editorial content of Golf Digest, Tarde will expand his purview to include GOLFTV and report to Alex Kaplan, President and General Manager, Discovery Golf.
Jerry Tarde, Editor-in-Chief, Golf Digest, and Global Head of Strategy and Content, Discovery Golf, said: “Golf Digest has this amazing team of editors, reporters, producers, photographers and contributors – all dedicated to helping golfers improve and be smarter consumers of the game we love. Discovery’s vision to create one global destination for everything a golf fan could want is perfectly aligned with what Golf Digest does every day. As we look to the future, Discovery’s global scale and ability to light up content on all platforms and in every language, combined with the PGA TOUR’s brand, will benefit golf and golfers worldwide.”
Kaplan added, “A critical piece is Golf Digest’s people. We’re thrilled to welcome aboard Golf Digest’s world-class team and its Chairman and Editor-in-Chief, Jerry Tarde, who is widely considered the dean of golf journalism.”
Golf Digest reaches millions every month across all platforms:
• 60 million video views
• 4.8 million readers
• 4.8 million digital uniques
• 2.2 million social followers
