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"Group of fans" is a weird way to describe serial entrepreneurs and angel investors. I'm sure they like the product. There's only one person on that list withou

"Group of fans" is a weird way to describe serial entrepreneurs and angel investors. I'm sure they like the product. There's only one person on that list without a background in finance/investing, who happens to be the spouse of another person on the list. Congrats on the exit, I just think it's odd to describe the acquiring party that way.

yowlingcat 7y ago
Is it? While "syndicate" might have been a more succinct and accurate way of describing that group, it is a little bit uncommon. From most instances I can recall, acquisitions tend to be by a single corporate entity or a private equity fund of some kind. Unless such an entity existed prior to this acquisition, it does seem a bit out of the ordinary.
- unlinked_dll 7y ago
  I think ownership groups aren't uncommon in the small business world (as in not-startups, like family businesses). Totally different world but that's how sports teams' acquisitions are handled these days.
  - yowlingcat 7y ago
    Wow, that's fascinating -- I don't know too much about sports team acquisitions but it's pretty cool if that's how they work. If this is something you know more about, would you mind going into more detail about how that works?
    - unlinked_dll 7y ago
      Historically teams (in the US) have been owned by a single person. But today, a sports team acquisition involves a 10-figure transaction and possibly the construction of a stadium if there's a move, which could also be in the low 10-figures. There are not that many individuals who can afford to buy a team by themselves. That's why they form ownership groups with a lead investor to be the "owner" face of the team (and sometimes, they'll get big names as minority stakeholders to give them legitimacy). An example of this is when an ownership group bought the Miami Marlins [1]. [1] https://www.nbcsports.com/boston/boston-red-sox/derek-jeter-group-buys-miami-marlins-12-billion https://www.nbcsports.com/boston/boston-red-sox/derek-jeter-... One difference with sports teams is that some members of the ownership group do it for vanity/ego/pride as much as an investment opportunity. There's a lot of prestige in having ownership of a major sports franchise, not only because it's incredibly expensive but because the opportunity to purchase a stake is not common and the entire ownership group is subject to approval from all the other owners in the league. So you can't just buy a team, you have to be ok'd by all the other teams.
    - skinnymuch 7y ago
      The valuation of sports teams for the big 4 (and especially big 3 in terms of big numbers) has skyrocketed. It is quite possible from here on out that no NBA or MLB team will be sold for less than $1B total valuation. And no NFL team for under $2B. It’s a lot for individuals to pay. It’s rare for teams to be owned by companies or funds like the NBA’s Toronto Raptors. But even that holding company has one guy owning a third of it. Or NFL’s Green Bay Packers being a public company. Most leagues also have requirements for how much of the team can be paid for with debt, loans, etc. For a perspective on how crazy the skyrocketing valuations are, NBA and MLB teams outside major markets were going for under $500M and NFL teams for way under $1B. Major market teams were still going for a lot like NFL’s Washington DC Redskins went for over a billion 20 years ago, but even just five years ago the NBA’s Milwaukee Bucks went for around $500M. Now that they have a new stadium, sometimes that stuff is conditional on the purchase, their value has probably doubled (along with currently being a championship contender with an MVP superstar entering his prime). At this point, almost no individuals can take on a whole team purchase on their own. Or be able to pay up a higher price on their own. Exceptions are also people wildly richer than most owners like Steve Ballmer who’s around top 15 richest people and paid handsomely for the NBA’s LA Clippers, though he will also profit off it as well. Many, if not most, current big 3 majority owners would not be able to afford their own team if you looked at their net worth outside the team.
- formercoder 7y ago
  Just the deals you regularly hear about in the news. JVs and multi fund buyers are not at all unheard of.
  - yowlingcat 7y ago
    I said the same thing in another sibling comment, but I'd love to hear more if you've got some experience in the space and are willing to share!
- ehnto 7y ago
  It made me think it was a group of intrepid readers who got together to invest, which is a much more interesting story than career investors being a fan of a thing they're investing in.
rhizome 7y ago
To be sure, it's their wording.
wutbrodo 7y ago
"fast-growing science brand poised for growth", "the literary science magazine with more than 10 thousand monthly paying subscribers and an online reach of more than 10 million" Between the marketing numbers and the weird detached third-person references to Nautilus, this is written like a marketing pitch, not an acquisition announcement. It's very weird
- ComodoHacker 7y ago
  It's a marketing pitch for the next exit!
mellosouls 7y ago
Yeah, I've been a fan of it for a few years, but I must have missed the invite on that one.
dang 7y ago
Ok, we've put investors in the title in the way that the article does in its first sentence.

yowlingcat 7y ago

Is it? While "syndicate" might have been a more succinct and accurate way of describing that group, it is a little bit uncommon. From most instances I can recall, acquisitions tend to be by a single corporate entity or a private equity fund of some kind. Unless such an entity existed prior to this acquisition, it does seem a bit out of the ordinary.

unlinked_dll 7y ago
I think ownership groups aren't uncommon in the small business world (as in not-startups, like family businesses). Totally different world but that's how sports teams' acquisitions are handled these days.
- yowlingcat 7y ago
  Wow, that's fascinating -- I don't know too much about sports team acquisitions but it's pretty cool if that's how they work. If this is something you know more about, would you mind going into more detail about how that works?
  - unlinked_dll 7y ago
    Historically teams (in the US) have been owned by a single person. But today, a sports team acquisition involves a 10-figure transaction and possibly the construction of a stadium if there's a move, which could also be in the low 10-figures. There are not that many individuals who can afford to buy a team by themselves. That's why they form ownership groups with a lead investor to be the "owner" face of the team (and sometimes, they'll get big names as minority stakeholders to give them legitimacy). An example of this is when an ownership group bought the Miami Marlins [1]. [1] https://www.nbcsports.com/boston/boston-red-sox/derek-jeter-group-buys-miami-marlins-12-billion https://www.nbcsports.com/boston/boston-red-sox/derek-jeter-... One difference with sports teams is that some members of the ownership group do it for vanity/ego/pride as much as an investment opportunity. There's a lot of prestige in having ownership of a major sports franchise, not only because it's incredibly expensive but because the opportunity to purchase a stake is not common and the entire ownership group is subject to approval from all the other owners in the league. So you can't just buy a team, you have to be ok'd by all the other teams.
  - skinnymuch 7y ago
    The valuation of sports teams for the big 4 (and especially big 3 in terms of big numbers) has skyrocketed. It is quite possible from here on out that no NBA or MLB team will be sold for less than $1B total valuation. And no NFL team for under $2B. It’s a lot for individuals to pay. It’s rare for teams to be owned by companies or funds like the NBA’s Toronto Raptors. But even that holding company has one guy owning a third of it. Or NFL’s Green Bay Packers being a public company. Most leagues also have requirements for how much of the team can be paid for with debt, loans, etc. For a perspective on how crazy the skyrocketing valuations are, NBA and MLB teams outside major markets were going for under $500M and NFL teams for way under $1B. Major market teams were still going for a lot like NFL’s Washington DC Redskins went for over a billion 20 years ago, but even just five years ago the NBA’s Milwaukee Bucks went for around $500M. Now that they have a new stadium, sometimes that stuff is conditional on the purchase, their value has probably doubled (along with currently being a championship contender with an MVP superstar entering his prime). At this point, almost no individuals can take on a whole team purchase on their own. Or be able to pay up a higher price on their own. Exceptions are also people wildly richer than most owners like Steve Ballmer who’s around top 15 richest people and paid handsomely for the NBA’s LA Clippers, though he will also profit off it as well. Many, if not most, current big 3 majority owners would not be able to afford their own team if you looked at their net worth outside the team.
formercoder 7y ago
Just the deals you regularly hear about in the news. JVs and multi fund buyers are not at all unheard of.
- yowlingcat 7y ago
  I said the same thing in another sibling comment, but I'd love to hear more if you've got some experience in the space and are willing to share!
ehnto 7y ago
It made me think it was a group of intrepid readers who got together to invest, which is a much more interesting story than career investors being a fan of a thing they're investing in.

rhizome 7y ago

To be sure, it's their wording.

wutbrodo 7y ago

"fast-growing science brand poised for growth", "the literary science magazine with more than 10 thousand monthly paying subscribers and an online reach of more than 10 million" Between the marketing numbers and the weird detached third-person references to Nautilus, this is written like a marketing pitch, not an acquisition announcement. It's very weird

ComodoHacker 7y ago
It's a marketing pitch for the next exit!

mellosouls 7y ago

Yeah, I've been a fan of it for a few years, but I must have missed the invite on that one.

dang 7y ago

Ok, we've put investors in the title in the way that the article does in its first sentence.