13228: Johnson Publishing Quits Publishing.

From The Chicago Tribune…

Johnson Publishing sells Ebony, Jet magazines to Texas firm

Johnson Publishing sells magazines that have chronicled African-American life since 1945

By Robert Channick • Contact Reporter

After a 71-year run in Chicago, Johnson Publishing is getting out of publishing.

The company said Tuesday it has sold Ebony, its iconic African-American lifestyle magazine, and the now digital-only Jet magazine to Clear View Group, an Austin, Texas-based private equity firm, for an undisclosed amount.

Johnson Publishing will retain its Fashion Fair Cosmetics business and its historic Ebony photo archives, which remains up for sale. The deal, which closed in May, also included the assumption of debt.

A family-owned business throughout its history, Ebony has documented the African-American experience since it first hit newsstands in 1945. It has shaped culture ever since, coming into its own as it reported from the front lines of the civil rights movement during the 1960s in powerful photos and prose.

In recent years, though, Johnson Publishing has seen declining media revenues as it struggled to evolve from print to digital platforms.

Linda Johnson Rice, chairman of Johnson Publishing and daughter of founder John Johnson, will serve as chairman emeritus on the board of the new company.

“This is the next chapter in retaining the legacy that my father, John H. Johnson, built to ensure the celebration of African-Americans,” she said in a statement Tuesday.

The new publishing entity, Ebony Media Operations, will maintain the magazine’s Chicago headquarters and its New York editorial office, as well as much of the current staff, according to Michael Gibson, co-founder and chairman of African-American-owned Clear View Group.

It is the first investment in the publishing business for Clear View.

“We made this purchase because this is an iconic brand — it’s the most-recognized brand in the African-American community,” said Gibson, 59. “We just think this is a great opportunity for us.”

Cheryl McKissack, who has served as chief operating officer since 2013, will assume the role of CEO of the new publishing entity under Clear View, operating out of the magazine’s Chicago office. Kierna Mayo is stepping down as editor-in-chief of Ebony to pursue other opportunities, Gibson said.

Chicago-based Kyra Kyles, who has headed up digital content for Ebony and Jet since last June, will add the role of editor-in-chief of Ebony, Gibson said.

“When we make an investment, that’s what we look for — a strong team that can actually run the company,” Gibson said. “We’re not managers or experts by any stretch of imagination in the media business. What we bring to the table is very strong networking and the ability to raise financing and the ability to establish a vision for the company.”

Desiree Rogers, the former social secretary for President Barack Obama who has been steering Johnson Publishing since 2010, will remain CEO, focusing on the cosmetics business, which represents about half of the company’s total revenue.

“The overall strategy of separating these two distinct businesses — media and cosmetics — will ensure that both iconic brands are positioned for future investment and growth,” Rogers said in a statement.

Under Rogers, Johnson Publishing made a number of moves in an effort to shore up finances. Those included taking on a minority partner in 2011, and taking the money-losing weekly digest Jet out of print circulation in 2014.

In January 2015, Johnson Publishing put its entire photo archive up for sale, hoping to raise $40 million. The historic collection spans seven decades of African-American history, chronicling everyone from Martin Luther King Jr. to Sammy Davis Jr.

The collection is still for sale, Rogers said Tuesday.

While the publishing industry continues to face headwinds — year-over-year magazine revenue is down 9 percent through April, according to Standard Media Index — Gibson said Ebony will remain in print for the foreseeable future. At the same time, he recognizes the need to ramp up digital growth.

“There’s a lot of good reasons to keep the print,” Gibson said. “That will always be our anchor. We want to grow the digital platform more consistently with both Ebony and Jet.”

Gibson also sees opportunity in leveraging and expanding Ebony’s events business. But in the end, the greatest asset he acquired was the legacy of a brand, one which he hopes will be influential for years to come.

“It’s a dream come true,” Gibson said. “Growing up, we had Ebony and Jet in our household all along. You knew you made it when you made it to the cover of Ebony or Jet. It is just exciting — I pinch myself every morning.”

11601: Fade To Black In Chicago.

From Crain’s Chicago Business…

Why Chicago’s history of black business success is fading

By David Mendell

Looking at the history of African-American business success, Chicago has no equal. Unfortunately, the past has not been prologue.

Chicago was the incubator for such significant black businesses as Johnson Publishing Co., Johnson Products and more than a dozen other nationally recognized black-led companies. No other city has birthed black business icons as notable as John Johnson, Ed Gardner and, of course, Oprah Winfrey.

But as those success stories fade into history, prominent black business professionals are raising unsettling questions about the current state of black entrepreneurship: Where is the next generation? Why do so many executive suites and corporate boardrooms lack minorities? And is Chicago’s mainstream business culture institutionally biased against promoting African-Americans into the upper ranks?

Chicago has more than its share of nationally recognized African-American politicians, entertainers, musicians and sports figures. But the decreasing visibility of major black business leaders is stark in comparison to the region’s sizable black population and its storied history. A Chicago Urban League survey released this year showed that only 6.6 percent of corporate board members in parts of four Great Lakes states are black.

“It used to be that Chicago was the mecca of black businesses, but there’s no doubt that we have gone backwards substantially when it comes to successful African-American entrepreneurs,” says John Rogers Jr., founder and CEO of Chicago-based Ariel Investments LLC.

Tapped by Mayor Rahm Emanuel in 2011 to lead a task force on business diversity, Mr. Rogers has delivered numerous speeches citing the bleak statistics. But he wonders just how many corporate leaders have been listening. There are few black-led companies among the top 25 national firms in many important sectors—banking, construction, law, finance. When Don Thompson was named CEO of McDonald’s Corp. last year, he became just the sixth active black CEO at a Fortune 500 company. Loop Capital Holdings LLC’s James Reynolds and Mr. Rogers also are among the few exceptions that prove the rule.

“The reality is, we are not being included in the lucrative, fast-growing parts of our economy—the sectors where long-term, real wealth is created: hedge funds, private equity, investment banking,” Mr. Rogers says. ”The state of diversity in the finance industry is appalling. Ninety-nine percent of leaders talk a big game, but in places like Chicago, we have gone backwards. We’re just not fighting hard enough.”

Black leadership is equally hard to find in other key Chicago industries, such as commercial real estate development, futures and options exchanges and the burgeoning technology sector. If Mr. Rogers’ statements have merit, and the dismal statistics suggest they do, how did this happen? Why are blacks still so behind the curve, 50 years after the March on Washington?

Experts point to a complex array of reasons.

For one, cultural and consumer-buying patterns have changed. Larger, mainstream companies now market products to black consumers, and African-Americans are less likely to look solely at black-owned companies for their needs. Thus, it’s harder for a black entrepreneur to market products or services primarily to blacks and achieve success.

“Johnson Publishing and Johnson (Products)—those companies grew and thrived when there was real segregation in the market,” says Andrea Zopp, president and CEO of the nonprofit Urban League, which advocates for African-American causes. Today, that segregation is waning. The business model that John Johnson and Ed Gardner pursued—dominating the black market because the larger white consumer market was closed to them—no longer exists.

The recent economic crash also cannot be overlooked. Anecdotal evidence suggests that Chicago’s black business community has taken an even greater blow than white-owned businesses. Before the recession, Chicago had 17 banks either owned by minorities or focused on lending to minorities. Six failed. And as banks have failed and credit has tightened, minority entrepreneurs have found working capital harder to come by. In addition, when companies begin struggling for mere survival, efforts to diversify often are shoved to the back burner.

Read the full story here.

10997: BHM 2013—Regions.

Regions wins for Most Awkward Photoshop® Image of the Month.

9055: Delivering News On John H. Johnson.

Postal Service Previews John H. Johnson Stamp Via Social Media
Trailblazing Publisher of Ebony, Jet, Immortalized on Forever Stamp

The Postal Service continues its sneak peek at some of its 2012 stamps, using social media outlets to preview the 2012 Black Heritage Stamp honoring legendary publisher John H. Johnson. Using social media to reach broader, more diverse audiences is an initiative that began Monday. Select stamps from the 2012 commemorative program will continue to be previewed one at a time.

Customers may preview the stamps on Facebook at facebook.com/USPSStamps, through Twitter @USPSstamps or on the website Beyond the Perf at www.beyondtheperf.com/2012-preview. Beyond the Perf is the Postal Service’s online site for the back story on upcoming stamp subjects, first-day-of-issue events and other philatelic news.

John H. Johnson Forever Stamp

“We are proud to immortalize John H. Johnson as our latest inductee in our Black Heritage stamp series,” said Stephen Kearney, manager, Stamp Services. “He was the trailblazing publisher of Ebony, Jet and other magazines as well as an entrepreneur. In 1982, he became the first black person to appear on Forbes magazine’s annual list of the 400 wealthiest people in America. His magazines portrayed black people positively at a time when such representation was rare, and he played an important role in the civil rights movement. President Clinton awarded him the Presidential Medal of Freedom in 1996.”

The stamp, designed by art director Howard Paine, features a color photograph of John H. Johnson taken by Bachrach Studios. The photographer was David McCann.

The Postal Service has recognized the achievements of prominent African Americans through the Black Heritage series since 1978. The series highlights outstanding individuals who helped shape American culture.

Other 2012 Forever stamps previewed this week were the 2012 Cherry Blossoms Centennial, the Edgar Rice Burroughs and Love Ribbons stamps.

The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.