Red Ventures

Last updated

Red Ventures
FormerlyRed F (1999–2003)
Company type Private
Industry
Founded2000;24 years ago (2000)
Headquarters Indian Land, South Carolina, U.S. (Fort Mill mailing address)
Key people
Ric Elias (CEO)
ServicesMarketing, advertising
RevenueUS$2 billion (2021)
Divisions
Subsidiaries
Website redventures.com

Red Ventures is an American media company that owns and operates brands such as Lonely Planet, The Points Guy, Healthline, and Bankrate. [1] Red Ventures focuses on news, advice, and review websites. [2] The company's corporate headquarters is located in Indian Land, South Carolina, a suburb of Charlotte, North Carolina. [3]

Contents

History

Red Ventures was founded as Red F [4] on September 29, 1999, [5] in Fort Mill, South Carolina by Ric Elias and Dan Feldstein. [6] In 2003, it was launched as Red Ventures, beginning with DIRECTV (DirectstarTV brand). [7] It acquired Modern Consumer in 2008. [8] In 2010, General Atlantic invested in Red Ventures, and its managing director Anton Levy joined the board of directors. [9] [10] [11] They acquired homeinsurance.com in 2012, which included a satellite office in Wilmington, North Carolina. [12]

In 2015, the company got a $250 million investment from Silver Lake. [13] That same year, it doubled the size of its headquarters [14] and bought postal services company Imagitas from Pitney Bowes for $310 million. [15] The acquisition was in large part due to Imagitas' exclusive 10 year partnership with USPS [16] to facilitate the official Change of Address process, which roughly 40 million people used each year. [17]

Red Ventures acquired Soda.com in 2016. [18] In 2017, it acquired several companies including Choose Energy, [18] Allconnect [19] and Bankrate, Inc. (including The Points Guy). [20] Bankrate was acquired for $1.24 billion in cash in a deal announced July 3, 2017. [21] [22] HigherEducation.com [23] and Healthline were acquired in 2019. [24]

By 2020, the company had grown into an international presence with more than 100 brands, 3,000 employees, and operations in the United Kingdom and Brazil. [25] On September 14, 2020, Red Ventures agreed to purchase the CNET Media Group from ViacomCBS for $500 million. [26] This gave the company ownership of publications including GameSpot, Metacritic, TV Guide, Chowhound, GameFAQs, Giant Bomb, Cord Cutters News, Comic Vine, and ZDNET. [27] [28] [29] On December 1, 2020, Red Ventures bought Lonely Planet from Tennessee-based NC2 Media for an undisclosed amount. [30] [31]

In 2021, the company had 4,500 employees and 751 million readers per month. [32] [33] It acquired Healthgrades.com from Mercury Healthcare for an undisclosed amount. [34] It closed Chowhound that year. [28] In 2022, the company sold the websites GameSpot, Metacritic, TV Guide, GameFAQs, Giant Bomb, Comic Vine and Cord Cutters to Fandom, Inc.. [35] That year, it partnered with UnitedHealth Group's Optum Health to launch RVO Health. [36]

In May 2023, Red Ventures agreed to pay the United States $2.75 million to resolve a whistleblower's allegations that they violated the False Claims Act [37] by underpaying on contracts connected to the USPS change-of-address process. [38]

On August 6, 2024, The New York Times reported that Red Ventures was selling the CNET Media Group for $100 million to Ziff Davis, with the deal expected to close in the third quarter of 2024. [39]

Business model

In 2023, The Verge described the business model of the company as "publish[ing] content designed to rank highly in Google search for "high-intent" queries and ... monet[izing] that traffic with lucrative affiliate links". [40] Stories are aimed at people who are likely to buy something ("high-intent"), with a particular focus on financial content such as credit cards, as the media company gets payments in the hundreds of dollars for each customer that buys a credit card. [40] [41] Red Ventures also aims to get paid for guiding readers to buy drugs and medical consultations. [41]

The characterization came after the website Futurism found several articles published by Red Ventures properties, including CNET, were quietly written by artificial intelligence software, [42] with the stories containing numerous inaccuracies and instances of plagiarism. [43] Red Ventures announced layoffs at CNET a few weeks after the reports from The Verge and Futurism, which the company says were unrelated. [44] [45]

Futurism additionally highlighted undisclosed AI-generated, SEO-focused content produced by Red Ventures's education division (internally RV EDU). This content promotes schools with which Red Ventures maintains affiliate agreements, such as University of Phoenix (a for-profit college owned by Apollo Global Management) and Liberty University (founded by conservative activist and Baptist pastor Jerry Falwell). Websites operated by RV EDU include BestColleges.com, TheBestSchools.org, NurseJournal.org, ComputerScience.org, and Psychology.org, "as well as numerous sites with domain names that imply they're nonprofits". [46]

In July 2023, Elias announced that AI-generated content, both editorial content and targeted advertisements, would be a major part of the company's business model moving forward. [47]

Following CNET publishing AI-generated stories containing errors and plagiarized content, as well as incorrect attributions to human writers, the Wikipedia community downgraded CNET's reliability, such that all content since the Red Ventures acquisition should not be considered reliable. [48] [49] Employees unionized in response to layoffs and the risk to their professional reputations. [50] [48] [51] [52] Red Ventures subsequently attempted to sell CNET for $250 million; the approximate halving of CNET's value under Red Ventures' ownership is attributed to interest rates, a slower ad market, and potential buyers expressing concern at the reputational damage of the AI scandals. [50] [53]

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References

  1. ↑ Hudson, Caroline. "Red Ventures adding jobs as it integrates ViacomCBS' CNET Media Group". Charlotte Business Journal. Archived from the original on March 18, 2022. Retrieved November 13, 2020.
  2. ↑ Goldberg, Steve (July 2019). "Why This $2 Billion Business Swears By the 'Pencil Rule'". Inc. Archived from the original on November 14, 2021. Retrieved December 6, 2020.
  3. ↑ "Red Ventures CEO: We're going to keep growing". charlotteobserver. Archived from the original on December 2, 2020. Retrieved April 9, 2018.
  4. ↑ "Staying in Red brings new life". bizjournals.com. November 5, 2007. Archived from the original on March 26, 2023. Retrieved February 8, 2023.
  5. ↑ "Red Ventures LLC". Bloomberg . Archived from the original on November 14, 2021. Retrieved December 6, 2020.
  6. ↑ Elkins, Ken (December 29, 2010). "Ric Elias and Dan Feldstein, Red Ventures". bizjournals.com. Archived from the original on March 26, 2023. Retrieved September 6, 2022.
  7. ↑ Leadership: Ric Elias Archived June 4, 2008, at the Wayback Machine , Red Ventures Website, retrieved July 30, 2008.
  8. ↑ "Red Ventures Acquires Lead Generation Firm Modern Consumer" Archived August 5, 2008, at the Wayback Machine , Direct Magazine, June 23, 2008
  9. ↑ Ventures, Red. "Red Ventures Announces Growth Capital Investment by General Atlantic". Prnewswire.com (Press release). Archived from the original on August 16, 2021. Retrieved August 16, 2021.
  10. ↑ "General Atlantic Team - Anton J. Levy". General Atlantic website. Archived from the original on August 24, 2016. Retrieved November 4, 2015.
  11. ↑ "Red Ventures Announces Growth Capital Investment by General Atlantic". General Atlantic. 2010. Archived from the original on March 15, 2017. Retrieved January 15, 2016.
  12. ↑ Wilson, Jen (April 3, 2012). "Red Ventures buys HomeInsurance.com". Charlotte Business Journal. Archived from the original on August 3, 2021. Retrieved November 21, 2021.
  13. ↑ De La Merced, Michael (January 7, 2015). "Silver Lake Makes Big Bet on Red Ventures, a Digital Marketing Company". The New York Times . Archived from the original on December 19, 2020. Retrieved December 6, 2020.
  14. ↑ Portillo, Ely (November 4, 2015). "Red Ventures breaks ground on project to double size of its headquarters". Charlotte Observer . Archived from the original on March 7, 2024. Retrieved December 6, 2020.
  15. ↑ Elkins, Ken (May 28, 2015). "Red Ventures buying company with important postal contract". Charlotte Business Journal . Archived from the original on October 31, 2020. Retrieved December 6, 2020.
  16. ↑ "Brands - MyMove | Red Ventures". prod.redventures.com. Retrieved July 1, 2023.[ dead link ]
  17. ↑ "Imagitas, a New England Company, Signs 10-year Contract with US Postal Service". Business Wire. January 19, 2011. Archived from the original on July 1, 2023. Retrieved July 1, 2023.
  18. 1 2 "We Are Red Ventures". Red Ventures. Archived from the original on March 7, 2017. Retrieved March 6, 2017.
  19. ↑ "Red Ventures Acquires Allconnect". Red Ventures. September 7, 2017. Archived from the original on December 31, 2020. Retrieved September 7, 2017.
  20. ↑ "Red Ventures Announces Closing of Acquisition of Bankrate, Inc". Red Ventures. Archived from the original on January 14, 2018. Retrieved November 8, 2017.
  21. ↑ Stratton, Ali (July 3, 2017). "Personal Finance Website Bankrate to be Acquired by Marketing Firm Red Ventures". The Wall Street Journal . Archived from the original on October 12, 2020. Retrieved December 6, 2020.
  22. ↑ Bond, Shannon; Samson, Adam (July 3, 2020). "Bankrate website to be bought by Red Ventures for $1.24bn". Financial Times . Archived from the original on May 5, 2021. Retrieved December 6, 2020.
  23. ↑ "Red Ventures Acquires HigherEducation.com". Red Ventures. Archived from the original on May 14, 2019. Retrieved May 13, 2019.
  24. ↑ "Red Ventures Acquires Healthline Media". Red Ventures. Archived from the original on August 7, 2019. Retrieved August 7, 2019.
  25. ↑ Sakoui, Anousha (September 14, 2020). "ViacomCBS sells CNET Media for less than half what CBS paid in 2008". The Los Angeles Times . Archived from the original on January 20, 2021. Retrieved December 6, 2020.
  26. ↑ Mullin, Benjamin (September 14, 2020). "ViacomCBS to Sell CNET to Red Ventures for $500 Million". The Wall Street Journal . Archived from the original on October 10, 2020. Retrieved December 6, 2020.
  27. ↑ Spangler, Todd (September 14, 2020). "ViacomCBS Reaches Deal to Sell CNET for $500 Million to Marketing Firm Red Ventures". Variety. Archived from the original on December 19, 2020. Retrieved November 13, 2020.
  28. 1 2 Asimov, Eric (March 10, 2022). "Chowhound Closes After 25 Years of Food Obsession, Wisdom, and Debate". The New York Times . Archived from the original on October 20, 2022. Retrieved October 21, 2022.
  29. ↑ Gach, Ethan (January 19, 2023). "Layoffs Hit GameSpot, Giant Bomb Just Months After Fandom Buys Them". Kotaku Australia. Archived from the original on March 14, 2023. Retrieved October 10, 2023.
  30. ↑ Muccigrosso, Catherine (December 1, 2020). "Red Ventures gobbles up another familiar brand name. This time it's travel related". The Charlotte Observer . Archived from the original on December 4, 2020. Retrieved December 6, 2020.
  31. ↑ Burke-Kennedy, Eoin. "Lonely Planet sold to US digital marketing group for undisclosed sum". Irish Times . Archived from the original on December 5, 2020. Retrieved December 6, 2020.
  32. ↑ Stenberg, Mark (August 4, 2022). "CNET Hires Condé Nast Chief Data Officer". adweek.com. Archived from the original on August 11, 2022. Retrieved August 11, 2022.
  33. ↑ Smith, Ben (August 15, 2021). "You've Never Heard of the Biggest Digital Media Company in America". The New York Times. ISSN   0362-4331. Archived from the original on August 11, 2022. Retrieved August 11, 2022.
  34. ↑ "RV Health, A Red Ventures Business, Acquires Healthgrades.com from Mercury Healthcare | Red Ventures". Red Ventures. Archived from the original on September 2, 2021. Retrieved September 2, 2021.
  35. ↑ Weprin, Alex (October 3, 2022). "TV Guide, Metacritic, GameSpot Acquired by Fandom in $55M Deal With Red Ventures". The Hollywood Reporter. Archived from the original on December 7, 2022. Retrieved October 3, 2022.
  36. ↑ Lagasse, Jeff (July 13, 2022). "Optum, Red Ventures partner on consumer healthcare platform". Healthcare Finance News. Archived from the original on September 8, 2022. Retrieved September 8, 2022.
  37. ↑ LLP, Pollock Cohen. "Pollock Cohen LLP: Red Ventures, LLC And MYMOVE, LLC Agree To Pay $2.75 Million To Resolve False Claims Act Allegations". prnewswire.com (Press release). Archived from the original on July 1, 2023. Retrieved July 1, 2023.
  38. ↑ Marusak, Joe. "A Red Ventures company 'cheated' postal service, will pay $2.7M to settle case, feds say". Charlotte Observer. Archived from the original on May 31, 2023. Retrieved September 17, 2023.
  39. ↑ Mullin, Benjamin (August 6, 2024). "CNET to Be Sold to Ziff Davis in Sign of Possible Media Deals to Come". The New York Times. Retrieved August 6, 2024.
  40. 1 2 Vincent, James (January 19, 2023). "Inside CNET's AI-powered SEO money machine". The Verge. Archived from the original on November 9, 2023. Retrieved January 24, 2023.
  41. 1 2 Smith, Ben (August 15, 2021). "You've Never Heard of the Biggest Digital Media Company in America". The New York Times.
  42. ↑ "CNET Is Quietly Publishing Entire Articles Generated By AI". Futurism. January 15, 2023. Archived from the original on January 25, 2023. Retrieved January 24, 2023.
  43. ↑ "CNET's AI Journalist Appears to Have Committed Extensive Plagiarism". Futurism. January 23, 2023. Archived from the original on January 24, 2023. Retrieved January 24, 2023.
  44. ↑ Sato, Mia (March 2, 2023). "CNET is doing big layoffs just weeks after AI-generated stories came to light". The Verge. Archived from the original on March 2, 2023. Retrieved March 2, 2023.
  45. ↑ Al-Sibai, Noor; Christian, Jon (March 2, 2023). "CNET Hits Staff With Layoffs After Disastrous Pivot to AI Journalism". Futurism. Archived from the original on March 2, 2023. Retrieved March 2, 2023.
  46. ↑ Christian, Jon (February 2023). "Leaked Messages Show How CNET's Parent Company Really Sees AI-Generated Content". Futurism. Archived from the original on February 16, 2023. Retrieved February 22, 2023.
  47. ↑ Harrison, Maggie (July 2, 2023). "CNET's Parent Company Preparing to Kickstart the AI Content Engine". Futurism. Archived from the original on October 10, 2023. Retrieved September 17, 2023.
  48. 1 2 Dupré, Maggie Harrison (February 29, 2024). "Wikipedia No Longer Considers CNET a "Generally Reliable" Source After AI Scandal". Futurism. Archived from the original on February 29, 2024. Retrieved March 1, 2024.
  49. ↑ Edwards, Benj (February 29, 2024). "AI-generated articles prompt Wikipedia to downgrade CNET's reliability rating". Ars Technica . Archived from the original on March 5, 2024. Retrieved March 1, 2024.
  50. 1 2 Fischer, Sara (January 16, 2024). "Scoop: Red Ventures explores sale of CNET". Axios. Retrieved January 16, 2024.
  51. ↑ Harrington, Caitlin. "CNET Published AI-Generated Stories. Then Its Staff Pushed Back". Wired.
  52. ↑ Szczypinski, Sarah. "CNET Was Treating Staff Like Robots Long Before Publishing AI-Generated Articles". Futurism. Retrieved March 10, 2024.
  53. ↑ Harrison Dupré, Maggie. "CNET's Publisher Having Trouble Selling It Due to AI Scandal". Futurism.
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