You Provide the Pictures and I’ll Provide the War

September 17, 2018 | Ben Hunt | No Comments |

Time Magazine Sold to Salesforce Founder Marc Benioff for $190 Million

— Wall Street Journal, September 16, 2018

Real-life billionaires aren’t young Citizen Kane. They don’t buy media properties as vanity projects or as part of a crusading public interest. No, real-life billionaires are old Citizen Kane. They buy media properties because they understand the political and economic power of Fiat News. They buy them because these properties are the indispensable asset in an effective metagame strategy to maintain their empires.

Fiat News isn’t counterfeit news. It’s not an outright lie. Fiat News is opinion presented as news, and once you start looking for it, you will see it everywhere. For Charles Foster Kane, modeled after real-life billionaire William Randolph Hearst, the opinion presented as news could be as personal as a glowing review for the screeching operatic debut of his songbird wife, or as political as blaming Spain for blowing up a battleship. As real-life Hearst once said to a staffer, “you provide the pictures and I’ll provide the war.”

For modern-day William Randolph Hearsts, like Jeff Bezos (personal owner of the Washington Post) or Marc Benioff (the new personal owner of Time Magazine), I don’t think the goal is to start a jingoistic war in order to further a political career. But these modern-day Citizen Kanes DO have political goals in mind when they purchase these media assets.

As the old saying goes, you have to fight fire with fire. And to withstand the political barrage that the White House has rained down on Amazon over the past year … a barrage that is only going to increase in scope and intensity over the next decade regardless of who wins the 2020 election, as Bernie and Elizabeth and Kamala all get in on the Amazon-bashing act … Jeff Bezos needs the Washington Post to rain down a barrage of his own.

Salesforce.com isn’t getting the same sort of treatment from D.C. that Amazon is getting. Yet. But I think it’s coming. I think a hard rain is going to fall for modern-day robber barons like Benioff, men who have built multi-billion dollar personal fortunes out of serial acquisitions of profitless software companies and constant stock sales. And by constant I mean constant. From 2004 through 2010, under a series of 10b5-1 plans filed with the SEC, Marc Benioff sold at least 10,000 shares of Salesforce.com stock … Every. Single. Day. You can go on the SEC’s EDGAR website and look it up yourself. It’s really pretty awe-inspiring when you think about it.

What does Marc Benioff want from Time Magazine? He wants this. He wants the ability to create Fiat News. It’s the smart play for an Oligarch like Benioff. A really smart play.

To learn more about Epsilon Theory and be notified when we release new content sign up here. You’ll receive an email every week and your information will never be shared with anyone else.

Start the discussion at the Epsilon Theory Forum

The Latest From Epsilon Theory

epsilon-theory-clever-hans-october-26-2017-dead-poets

Office Hours Recap 01/20/2023

By Harper Hunt |
Hodor-2

Hodor

By Rusty Guinn |
movie-dead-poets-society-wallpaper-thumb

Office Hours Recap 01/06/2023

By Harper Hunt |
Robin Williams teaching a class in a scene from the film 'Dead Poets Society', 1989. (Photo by Touchstone Pictures/Getty Images)

Office Hours Recap 12/30/2022

By Harper Hunt |
body-count-2-400x300-1

Covid is China’s Vietnam War

By Ben Hunt |
epsilon-theory-clever-hans-october-26-2017-dead-poets

Office Hours Recap 12/16/2022

By Harper Hunt |
steve-martin-1-2

Webinar: It’s Not Just SBF – How to Recognize and Avoid Wall Street Cons

By Ben Hunt |
movie-dead-poets-society-wallpaper-thumb

Office Hours Recap 12/09/2022

By Harper Hunt |
Robin Williams teaching a class in a scene from the film 'Dead Poets Society', 1989. (Photo by Touchstone Pictures/Getty Images)

Office Hours Recap 11/18/2022

By Harper Hunt |
epsilon-theory-clever-hans-october-26-2017-dead-poets

Office Hours Recap 11/11/2022

By Harper Hunt |
DISCLOSURES

This commentary is being provided to you as general information only and should not be taken as investment advice. The opinions expressed in these materials represent the personal views of the author(s). It is not investment research or a research recommendation, as it does not constitute substantive research or analysis. Any action that you take as a result of information contained in this document is ultimately your responsibility. Epsilon Theory will not accept liability for any loss or damage, including without limitation to any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Consult your investment advisor before making any investment decisions. It must be noted, that no one can accurately predict the future of the market with certainty or guarantee future investment performance. Past performance is not a guarantee of future results.

Statements in this communication are forward-looking statements. The forward-looking statements and other views expressed herein are as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements, and there is no guarantee that any predictions will come to pass. The views expressed herein are subject to change at any time, due to numerous market and other factors. Epsilon Theory disclaims any obligation to update publicly or revise any forward-looking statements or views expressed herein. This information is neither an offer to sell nor a solicitation of any offer to buy any securities. This commentary has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Epsilon Theory recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.