Publisher's Note: In July 2020, Industry Dive acquired NewsCred's content marketing services (Content Studio, marketplace for licensed content and content hub services). NewsCred retained its software products. This is our CEO's perspective on the sale and what it means for the company. To learn more about the transaction, read the official press release here.
I always found it strange when people asked me, "What is your exit strategy?" We never started NewsCred to get out of it. In fact, my co-founders and I often used the phrase "let's build a sustainable, profitable company with real ramifications." It could take a lifetime for me to set up such a follow-up company. And I know that for many of our supporters, especially family members, the past twelve years must have felt like life! For this reason, I am very proud to inform you that we have reached an exciting milestone on our path today: We are announcing the sale of our Content Studio, Marketplace and related service business. NewsCred will retain its software products and continue as an independent company focused solely on our content marketing platform (CMP) and marketing orchestration technology. But more on that in a moment.
First of all, I just wanted to explain what happens because divestments are not that common. We have been operating as two separate business units (LOBs) for some time. We had our content LOB and our software LOB. Over the years we have found that our customers actually fit very well into these two categories. Our content LOB customers came to us because they appreciated our content studio (original content) and marketplace (licensed content) or our marketing services. While all of these customers used and paid for the CMP, it was not their primary value. We also had a large number of customers in our software LOB who only bought our software and standardized their marketing teams on our software.
Just over two years ago, we developed a long-term (3-year) strategy to outsource the Content LOB as an independent company so that both sides of the business get the right focus and the right investments. It turns out that with the right strategy, you can almost bring it to life. As if by no means, we not only outsourced it, but also found a great company and financial sponsor to acquire (and expand) this asset. As part of this sale, around 40 great employees will switch to Industry Dive (ID) and all customers in our content LOB will become customers of ID. For those of you who are unfamiliar with ID, it is because they are humble and understated (much like their CEO Sean). But they are an incredible company. And Sean, the Industry Dive team and Falfurrius Capital Partners, thank you for your faith and for holding out in the middle of a pandemic and closing a deal!
To our employees who are moving Thank you for everything you did to integrate NewsCred into today's company. Your fingerprints are everywhere in our business and we could never have implemented our strategy without your tireless efforts. I am very happy that business at Industry Dive is flourishing and flourishing. We are so proud of you and will do everything we can to make our software business a great success so that we can make you proud of us. Under the guidance and guidance of Jane (who is moving to ID to run this LOB as an independent business unit) and Sean, you are in incredibly good hands.
To our satisfied customers, Thank you for believing in us from the start. We created a category together and it was a great honor to work with you. We always gave everything to make you successful and you stood by our side (mainly through the highs but also through some lows). I'm excited to see how all resources and opportunities at ID will help take your content marketing programs to the next level. Of course, we are not going anywhere and look forward to continuing to support you with your CMP requirements. As part of the deal, I made sure that your team stayed intact, and I'm so happy that every single person at NewsCred (and all new divers) will keep. So nothing will change except for the better!
To our software customers, This journey continues. Our software business grew incredibly fast and this rocket ship just got a lot of extra fuel! We will invest tens of millions of dollars to implement our vision to build the Marketing Orchestration Platform of the future. We have been a leader in Gartner's Magic Quadrant for CMPs three times. But our vision is bigger and braver. We also win in the Marketing Resource Management (MRM) and Digital Asset Management (DAM).
Our belief is simple: if you can (thoughtfully) combine the best of these features, give marketers something they've never had before – a real chance to change how they work with integrated, modern, and specially designed software. By harmonizing the marketing teams, the content they create, the channels they activate, the data they analyze, and the technology that enables everything, you can really coordinate marketing and achieve amazing results.
We look forward to increasing our investment in research and development and continuing to build a world-class product and an extremely intelligent and hard-working team. Some of the largest companies in the world run their marketing teams with our software, and we're just getting started. Look forward to some big announcements in the coming months …
Finally to the NewsCred team, past and present, It has been the greatest privilege of my life to work for you. Thanks for the opportunity.
Originally published on July 28, 2020 at 5:42 p.m.