FOR IMMEDIATE RELEASE
Contact: Tom Goodman and Henry Miller Goodman Media International 212-576-2700
April 4, 2005
STEVE CASE'S REVOLUTION CONTINUES TO BUILD PORTFOLIO IN THE WELLNESS SECTOR WITH ACQUISITION OF WISDOM MEDIA GROUP’S ASSETS
Names New Management Team Led by Industry Veteran, C.J. Kettler
Washington, D.C. – Steve Case's new company, Revolution, has purchased the assets of Wisdom Media Group’s television/radio network, which is devoted to serving the health and wellness market sector, it was announced today. The investment further broadens Revolution’s portfolio of health and wellness assets. Through Revolution, Case will help Wisdom give a voice to the fragmented health and wellness market by developing and expanding the acquired property into a new, multi-platform lifestyle company.
“There is a cultural shift in values towards a life more in balance,” said Steve Case, founder of AOL and the Chairman and CEO of Revolution. “The category hasn’t yet hit its tipping point, but Wisdom Media is an attractive vehicle for reaching and uniting a now-fragmented audience that already accounts for $230 billion in annual consumer spending.”
Wisdom Media is currently distributed by Echostar and Comcast as a digital cable network and a popular Video On Demand service, by Sirius Satellite Radio as a radio channel, and online. It was launched in 1998 by cable pioneer Bill Turner as a brand devoted to health, wellness, and personal development. The Turner family invested more than $100 million to build and launch the network, which will now provide Revolution and its partners with a unique platform from which to build a broader business.
Over the next several months, Wisdom Media will be re-branded and re-launched with the goal of becoming, through managed growth, a core multi-platform health and wellness lifestyle brand. It will have a significant presence on television, satellite radio, online, VOD, as well as DVD.
“Wisdom has really been a family business, and we are happy that Steve Case shares our vision and commitment to producing the finest quality of healthy lifestyle programming,” said Cindy Sheets, former CEO of Wisdom Media and Mr. Turner's stepdaughter. Ms. Sheets will remain on Wisdom's board and will assist in the transition to new ownership. Brenda Turner, former Chairman and Chief Visionary Officer, adds “ I see Wisdom as a personal media network that is committed to making a difference in our lives and in the world. I am pleased that Wisdom will continue to grow under visionary leadership.”
Wisdom’s headquarters will move to New York. The new management team includes industry veterans Lee deBoer as Chairman; C.J. Kettler as CEO; and Robert W. Harris as CFO.
Mr. deBoer was one of the principal architects of the expansion and growth of Time Warner’s Home Box Office from 1976 to 1995. He established Media Futures, a multi-media consultancy in 1995, and in 1997 he was recruited to be CEO of New Century Network, the venture established by the nine largest newspaper companies to build a national network on the Internet.
Ms. Kettler served as President of Sales and Marketing at Oxygen, after more than 10 years as a Partner of Sunbow Entertainment, a top-ranked independent program supplier, where, as President and CEO, she negotiated the sale of the company to Sony Music Entertainment. Most recently, she served as Operating Executive and Managing Director at Solera Capital, a private equity firm with $250 million under management.
Mr. Harris was Vice President, Finance at About.com from its inception through the IPO, after which he served as About.com’s head of International Operations. Prior to that, he launched the Turkish Pay TV network Cine5 and created the business plans and helped supervise the launches of HBO Ole and HBO Hungary. Harris also had financial management positions at HBO and Paramount Pictures.
“Wisdom Media has built a solid foundation on which we can now construct an even more compelling brand in the healthy lifestyle category,” said Ms. Kettler. “With Revolution’s support and active involvement, along with this management team, we have the components in place to move the company to the next level of leadership in the category.”
New York-based Propeller Partners LLC, a media advisory team, consulted with Revolution on the acquisition. Daniels and Associates advised Wisdom Media Holdings, Inc. on the transaction. Propeller will continue to be an investor in Wisdom Media.
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Revolution (www.revolution.com) builds innovative companies in sectors that are ready for dramatic change. Initial activity will be in the healthcare, wellness and resort/real estate sectors. The common theme linking Revolution’s businesses is that they provide consumers with greater control, choice and convenience. Revolution partners with companies in the early growth stage and manages them for long-term growth. The Chairman and CEO of the company is Steve Case, best known as the entrepreneur who made the Internet accessible to millions of people by co-founding AOL. Revolution’s headquarters are in downtown Washington, D.C.
Wisdom ® (www.wisdommedia.com) is the leading, global media resource of information, entertainment, and communications services to the growing, worldwide community interested in health and wellness, improved personal growth, heightened spirituality and life purpose, global issues, human potential and self discovery. This community represents those interested in improving their lives, interested in enhancing the human experience and improving the world around them.
Propeller Partners LLC is a boutique strategic advisory services firm serving a wide range of media and entertainment companies. Founded by Lee deBoer, C.J. Kettler and Daniel Rayner, Propeller provides outsourced management and strategic development consulting services to private capital investors and portfolio companies. Capitalizing on the founding partners’ complementary experiences in strategy formulation, business development, branding and marketing, and M&A transactions, Propeller (www.propellerllc.com) has rapidly built an impressive track record in developing assets for sale and/or consolidation in a variety of traditional and emerging media sectors.
Daniels & Associates is a leader in financial services to the cable, telecommunications, media and technology industries worldwide. The company assists clients with mergers & acquisitions, private equity & debt financings and financial advisory engagements. Daniels is consistently ranked as one of the top advisors to the media and communications industries with more than $100 billion in completed transactions.
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