Red Ventures Explained

Red Ventures
Former Name:Red F (1999–2003)
Type:Private
Key People:Ric Elias (CEO)
Services:Marketing, advertising
Revenue:US$2 billion
Revenue Year:2021
Location:Fort Mill, South Carolina, U.S.

Red Ventures is an American media company that owns and operates brands such as Lonely Planet, CNET, ZDNet, 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 Fort Mill, South Carolina, a suburb of Charlotte, North Carolina.[3]

History

Red Ventures was founded on September 29, 1999,[4] in Fort Mill, South Carolina by Ric Elias and Dan Feldstein.[5] Before its 2020 acquisitions, the company had grown into an international presence with more than 100 brands, 3,000 employees, and operations in the United Kingdom and Brazil.[6]

In 2015, the company got a $250 million investment from Silver Lake.[7] That same year, it doubled the size of its headquarters[8] and bought postal services company Imagitas from Pitney Bowes.[9]

Red Ventures acquired Bankrate Inc. for $1.24 billion in cash in a deal announced July 3, 2017.[10] [11]

On September 14, 2020, Red Ventures agreed to purchase the CNET Media Group from ViacomCBS for $500 million.[12] On December 1, 2020, Red Ventures bought Lonely Planet from Tennessee-based NC2 Media.[13]

In 2021, the company had 4,500 employees and 751 million readers per month.[14] [15]

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.[16]

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". 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.[17] [18] Red Ventures also aims to get paid for guiding readers to buy drugs and medical consultations.[18]

The characterization came after the website Futurism found several articles published by Red Ventures properties, including CNET, were quietly written by artificial intelligence software,[19] with the stories containing numerous inaccuracies and instances of plagiarism.[20] Red Ventures announced layoffs at CNET a few weeks after the reports from The Verge and Futurism, which the company says were unrelated.[21] [22]

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".[23]

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.[24]

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.[25] [26] Employees unionized in response to layoffs and the risk to their professional reputations.[25] [27] [28] 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.[29] [30]

MyMove LLC and USPS Partnership

In 2015, Red Ventures acquired MyMove (formerly Imagitas),[31] in large part due to their exclusive partnership with USPS. In 2011, Imagitas formed a 10 year exclusive partnership with the USPS to facilitate the official Change of Address process, which roughly 40 million people use each year.[32]

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[33] by underpaying on contracts connected to the USPS change-of-address process.[34]

Timeline

Notes and References

  1. Web site: Hudson. Caroline. Red Ventures adding jobs as it integrates ViacomCBS' CNET Media Group. Charlotte Business Journal. November 13, 2020. March 18, 2022. https://web.archive.org/web/20220318170140/https://www.bizjournals.com/charlotte/news/2020/11/04/whats-next-after-red-ventures-acquires-cnet.html. live.
  2. Web site: July 2019. Goldberg. Steve. Why This $2 Billion Business Swears By the 'Pencil Rule'. Inc.. December 6, 2020. November 14, 2021. https://web.archive.org/web/20211114001841/https://www.inc.com/magazine/201908/steve-goldberg/red-ventures-digital-marketing-ric-elias-private-titans.html. live.
  3. News: Red Ventures CEO: We're going to keep growing. charlotteobserver. April 9, 2018. en. December 2, 2020. https://web.archive.org/web/20201202132937/https://www.charlotteobserver.com/news/business/article27016186.html. live.
  4. Web site: Red Ventures LLC. Bloomberg. December 6, 2020. November 14, 2021. https://web.archive.org/web/20211114001841/https://www.bloomberg.com/profile/company/2869270Z:US. live.
  5. Web site: Elkins . Ken . 2010-12-29 . Ric Elias and Dan Feldstein, Red Ventures . 2022-09-06 . bizjournals.com . March 26, 2023 . https://web.archive.org/web/20230326022456/https://www.bizjournals.com/charlotte/print-edition/2010/12/31/Ric-Elias-Dan-Feldstein.html . live .
  6. Web site: September 14, 2020. Sakoui. Anousha. ViacomCBS sells CNET Media for less than half what CBS paid in 2008. The Los Angeles Times. December 6, 2020. January 20, 2021. https://web.archive.org/web/20210120233058/https://www.latimes.com/entertainment-arts/business/story/2020-09-14/viacom-sells-cnet-media-to-marketing-company-red-ventures-for-500-million. live.
  7. Web site: January 7, 2015. De La Merced. Michael. Silver Lake Makes Big Bet on Red Ventures, a Digital Marketing Company. The New York Times. December 6, 2020. December 19, 2020. https://web.archive.org/web/20201219044257/https://dealbook.nytimes.com/2015/01/07/silver-lake-makes-big-bet-in-red-ventures-a-digital-marketing-company/. live.
  8. Web site: November 4, 2015. Portillo. Ely. Red Ventures breaks ground on project to double size of its headquarters. Charlotte Observer. December 6, 2020. March 7, 2024. https://web.archive.org/web/20240307004336/https://www.charlotteobserver.com/article42956325.html. live.
  9. Web site: May 28, 2015. Elkins. Ken. Red Ventures buying company with important postal contract. Charlotte Business Journal. December 6, 2020. October 31, 2020. https://web.archive.org/web/20201031235810/https://www.bizjournals.com/charlotte/blog/outside_the_loop/2015/05/red-ventures-buying-company-with-important-postal.html. live.
  10. Web site: Stratton. Ali. Personal Finance Website Bankrate to be Acquired by Marketing Firm Red Ventures. July 3, 2017. The Wall Street Journal. December 6, 2020. October 12, 2020. https://web.archive.org/web/20201012153817/https://www.wsj.com/articles/personal-finance-website-bankrate-to-be-acquired-by-marketing-firm-red-ventures-1499085529. live.
  11. Web site: July 3, 2020. Bond. Shannon. Samson. Adam. Bankrate website to be bought by Red Ventures for $1.24bn. Financial Times. December 6, 2020. May 5, 2021. https://web.archive.org/web/20210505105051/https://www.ft.com/content/a6eb158c-5ff6-11e7-91a7-502f7ee26895. live.
  12. News: Mullin. Benjamin. ViacomCBS to Sell CNET to Red Ventures for $500 Million. The Wall Street Journal. September 14, 2020. December 6, 2020. October 10, 2020. https://web.archive.org/web/20201010143625/https://www.wsj.com/articles/viacomcbs-nears-deal-to-sell-cnet-to-red-ventures-for-500-million-11600057067. live.
  13. Web site: December 1, 2020. Muccigrosso. Catherine. Red Ventures gobbles up another familiar brand name. This time it's travel related.. The Charlotte Observer. December 6, 2020. December 4, 2020. https://web.archive.org/web/20201204142928/https://www.charlotteobserver.com/news/business/biz-columns-blogs/whats-in-store/article247525910.html. live.
  14. Web site: Stenberg . Mark . 2022-08-04 . CNET Hires Condé Nast Chief Data Officer . 2022-08-11 . adweek.com . en-US . August 11, 2022 . https://web.archive.org/web/20220811190730/https://www.adweek.com/media/cnet-performance-advertising-karthic-bala/ . live .
  15. News: Smith . Ben . 2021-08-15 . You've Never Heard of the Biggest Digital Media Company in America . en-US . The New York Times . 2022-08-11 . 0362-4331 . August 11, 2022 . https://web.archive.org/web/20220811190905/https://www.nytimes.com/2021/08/15/business/media/red-ventures-digital-media.html . live .
  16. News: Mullin . Benjamin . 2024-08-06 . CNET to Be Sold to Ziff Davis in Sign of Possible Media Deals to Come . en-US . The New York Times . 2024-08-06 .
  17. Web site: Vincent . James . 2023-01-19 . Inside CNET's AI-powered SEO money machine . 2023-01-24 . The Verge . en-US . November 9, 2023 . https://web.archive.org/web/20231109043552/https://www.theverge.com/2023/1/19/23562966/cnet-ai-written-stories-red-ventures-seo-marketing . live .
  18. News: Smith . Ben . You’ve Never Heard of the Biggest Digital Media Company in America . The New York Times . 15 August 2021.
  19. Web site: CNET Is Quietly Publishing Entire Articles Generated By AI . 2023-01-24 . Futurism . January 25, 2023 . https://web.archive.org/web/20230125090724/https://futurism.com/the-byte/cnet-publishing-articles-by-ai . live .
  20. Web site: CNET's AI Journalist Appears to Have Committed Extensive Plagiarism . 2023-01-24 . Futurism . January 24, 2023 . https://web.archive.org/web/20230124193105/https://futurism.com/cnet-ai-plagiarism . live .
  21. Web site: CNET is doing big layoffs just weeks after AI-generated stories came to light . Mia . Sato . 2023-03-02 . The Verge . March 2, 2023 . March 2, 2023 . https://web.archive.org/web/20230302223118/https://www.theverge.com/2023/3/2/23622231/cnet-layoffs-ai-articles-seo-red-ventures . live .
  22. Web site: CNET Hits Staff With Layoffs After Disastrous Pivot to AI Journalism . Noor . Al-Sibai . Jon . Christian . 2023-03-02 . Futurism . March 2, 2023 . https://web.archive.org/web/20230302223738/https://futurism.com/cnet-layoffs-ai . live .
  23. Web site: Leaked Messages Show How CNET's Parent Company Really Sees AI-Generated Content . Jon . Christian . 2023-02-22 . Futurism . February 16, 2023 . https://web.archive.org/web/20230216172519/https://futurism.com/leaked-messages-cnet-red-ventures-ai . live .
  24. Web site: CNET's Parent Company Preparing to Kickstart the AI Content Engine . Maggie . Harrison . 2023-09-17 . Futurism . October 10, 2023 . https://web.archive.org/web/20231010044359/https://futurism.com/cnet-parent-company-ai-content-engine . live .
  25. Web site: Dupré . Maggie Harrison . 29 February 2024 . Wikipedia No Longer Considers CNET a "Generally Reliable" Source After AI Scandal . 2024-03-01 . Futurism . February 29, 2024 . https://web.archive.org/web/20240229230807/https://futurism.com/wikipedia-cnet-unreliable-ai . live .
  26. Web site: Edwards . Benj . 2024-02-29 . AI-generated articles prompt Wikipedia to downgrade CNET’s reliability rating . 2024-03-01 . . en-us . March 5, 2024 . https://web.archive.org/web/20240305194215/https://arstechnica.com/information-technology/2024/02/wikipedia-downgrades-cnets-reliability-rating-after-ai-generated-articles/ . live .
  27. News: Harrington . Caitlin . CNET Published AI-Generated Stories. Then Its Staff Pushed Back . Wired.
  28. News: Szczypinski . Sarah . CNET Was Treating Staff Like Robots Long Before Publishing AI-Generated Articles . 10 March 2024 . Futurism.
  29. Web site: Fischer . Sara . 2024-01-16 . Scoop: Red Ventures explores sale of CNET . 2024-01-16 . Axios . en-US.
  30. News: Harrison Dupré . Maggie . CNET’s Publisher Having Trouble Selling It Due to AI Scandal . Futurism.
  31. Web site: Brands - MyMove Red Ventures . 2023-07-01 . prod.redventures.com . en.
  32. Web site: 2011-01-19 . Imagitas, a New England Company, Signs 10-year Contract with US Postal Service . 2023-07-01 . Business Wire . en . July 1, 2023 . https://web.archive.org/web/20230701180109/https://www.businesswire.com/news/home/20110119005362/en/Imagitas-a-New-England-Company-Signs-10-year-Contract-with-US-Postal-Service . live .
  33. LLP . Pollock Cohen . Pollock Cohen LLP: Red Ventures, LLC And MYMOVE, LLC Agree To Pay $2.75 Million To Resolve False Claims Act Allegations . 2023-07-01 . prnewswire.com . en . July 1, 2023 . https://web.archive.org/web/20230701180109/https://www.prnewswire.com/news-releases/pollock-cohen-llp-red-ventures-llc-and-mymove-llc-agree-to-pay-2-75-million-to-resolve-false-claims-act-allegations-301838889.html . live .
  34. News: Marusak . Joe . A Red Ventures company 'cheated' postal service, will pay $2.7M to settle case, feds say . Charlotte Observer . September 17, 2023 . May 31, 2023 . https://web.archive.org/web/20230531193236/https://www.charlotteobserver.com/news/business/article275946836.html . live .
  35. Web site: 2007-11-05 . Staying in Red brings new life . 2023-02-08 . bizjournals.com . March 26, 2023 . https://web.archive.org/web/20230326022734/https://www.bizjournals.com/charlotte/stories/2007/11/05/story2.html?b=1194238800%5E1544661 . live .
  36. http://www.redventures.com/executives/ric.php Leadership: Ric Elias
  37. http://directmag.com/disciplines/red-ventures-acquire-modern-consumer-0624/ "Red Ventures Acquires Lead Generation Firm Modern Consumer"
  38. Red Ventures Announces Growth Capital Investment by General Atlantic. Red. Ventures. Prnewswire.com. August 16, 2021. August 16, 2021. https://web.archive.org/web/20210816025138/https://www.prnewswire.com/news-releases/red-ventures-announces-growth-capital-investment-by-general-atlantic-100520839.html. live.
  39. Web site: General Atlantic Team - Anton J. Levy. General Atlantic website. November 4, 2015. August 24, 2016. https://web.archive.org/web/20160824152639/http://www.generalatlantic.com/people/anton-j-levy. dead.
  40. Web site: Red Ventures Announces Growth Capital Investment by General Atlantic . 2010 . General Atlantic. January 15, 2016 . dead . https://web.archive.org/web/20170315085644/http://www.generalatlantic.com/media/archive/red-ventures-announces-growth-capital-investment-by-general-atlantic/ . Mar 15, 2017 .
  41. Web site: Red Ventures buys HomeInsurance.com . Jen . Wilson . Apr 3, 2012 . Charlotte Business Journal . November 21, 2021 . August 3, 2021 . https://web.archive.org/web/20210803181750/https://www.bizjournals.com/charlotte/news/2012/04/03/red-ventures-buys-homeinsurancecom.html . live .
  42. News: Silver Lake Makes Big Bet on Red Ventures, a Digital Marketing Company. Merced. Michael J. de la. DealBook. January 7, 2015 . March 6, 2017. en . live . https://web.archive.org/web/20201114033500/https://dealbook.nytimes.com/2015/01/07/silver-lake-makes-big-bet-in-red-ventures-a-digital-marketing-company/?_r=0 . Nov 14, 2020 .
  43. Web site: We Are Red Ventures. Red Ventures. en. March 6, 2017. March 7, 2017. https://web.archive.org/web/20170307045842/https://www.redventures.com/media/red-ventures-acquires-seattle-based-soda.html. dead.
  44. Web site: Red Ventures Acquires Allconnect. Red Ventures. September 7, 2017. en. September 7, 2017. December 31, 2020. https://web.archive.org/web/20201231082220/https://redventures.com/press/press-releases/red-ventures-acquires-allconnect. live.
  45. Web site: Red Ventures Announces Closing of Acquisition of Bankrate, Inc.. Red Ventures. en. November 8, 2017. January 14, 2018. https://web.archive.org/web/20180114020938/https://www.redventures.com/media/red-ventures-announces-closing-of-acquisition-of-bankrate.html. dead.
  46. Web site: Red Ventures Acquires HigherEducation.com. Red Ventures. May 13, 2019. May 14, 2019. https://web.archive.org/web/20190514013716/https://www.redventures.com/media/redventures-acquires-highereducationcom.html. dead.
  47. Web site: Red Ventures Acquires Healthline Media. Red Ventures. en. August 7, 2019. August 7, 2019. https://web.archive.org/web/20190807122402/https://www.redventures.com/media/redventures-acquires-healthline.html. dead.
  48. Web site: Bouma . Luke . An Important Update on the Future of Cord Cutters News . Cord Cutters News . 10 October 2023 . 26 March 2020 . March 1, 2024 . https://web.archive.org/web/20240301034636/https://cordcuttersnews.com/an-important-update-on-the-future-of-cord-cutters-news/ . live .
  49. Web site: Keys . Matthew . Exclusive: Red Ventures to close Cord Cutters News . The Desk . 10 October 2023 . 7 June 2022 . November 29, 2023 . https://web.archive.org/web/20231129011723/https://thedesk.net/2022/06/cord-cutters-news-closure-red-ventures-marketing-blog/ . live .
  50. Web site: Spangler. Todd. ViacomCBS Reaches Deal to Sell CNET for $500 Million to Marketing Firm Red Ventures. Variety. September 14, 2020. November 13, 2020. December 19, 2020. https://archive.today/20201219232151/https://variety.com/2020/digital/news/cnet-viacomcbs-sells-red-ventures-1234768810/. live.
  51. Web site: Gach . Ethan . Layoffs Hit GameSpot, Giant Bomb Just Months After Fandom Buys Them . Kotaku Australia . 10 October 2023 . 19 January 2023 . March 14, 2023 . https://web.archive.org/web/20230314231105/https://www.kotaku.com.au/2023/01/layoffs-hit-gamespot-giant-bomb-just-months-after-fandom-buys-them/ . live .
  52. Web site: Red Ventures Acquires Lonely Planet. December 2020. December 1, 2020. December 1, 2020. https://web.archive.org/web/20201201152700/https://redventures.com/press/press-releases/red-ventures-acquires-lonely-planet. live.
  53. Web site: Burke-Kennedy. Eoin. Lonely Planet sold to US digital marketing group for undisclosed sum. Irish Times. December 6, 2020. December 5, 2020. https://web.archive.org/web/20201205084250/https://www.irishtimes.com/business/media-and-marketing/lonely-planet-sold-to-us-digital-marketing-group-for-undisclosed-sum-1.4424895. live.
  54. Web site: RV Health, A Red Ventures Business, Acquires Healthgrades.com from Mercury Healthcare Red Ventures. 2021-09-02. Red Ventures. en. September 2, 2021. https://web.archive.org/web/20210902203509/https://www.redventures.com/press/press-releases/rv-health-a-red-ventures-business-acquires-healthgradescom-from-mercury-healthcare. live.
  55. Web site: Asimov . Eric . Chowhound Closes After 25 Years of Food Obsession, Wisdom, and Debate . . 2022-03-10 . October 21, 2022 . October 20, 2022 . https://web.archive.org/web/20221020161746/https://www.nytimes.com/2022/03/10/dining/chowhound-closing.html . live .
  56. Web site: Lagasse . Jeff . 2022-07-13 . Optum, Red Ventures partner on consumer healthcare platform . 2022-09-08 . Healthcare Finance News . en . September 8, 2022 . https://web.archive.org/web/20220908181708/https://www.healthcarefinancenews.com/news/optum-red-ventures-partner-consumer-healthcare-platform . live .
  57. Web site: Weprin . Alex . 2022-10-03 . TV Guide, Metacritic, GameSpot Acquired by Fandom in $55M Deal With Red Ventures . 2022-10-03 . The Hollywood Reporter . en-US . December 7, 2022 . https://web.archive.org/web/20221207000619/https://www.hollywoodreporter.com/business/digital/tv-guide-metacritic-gamespot-acquisition-fandom-1235231819/ . live .

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Red Ventures".

Except where otherwise indicated, Everything.Explained.Today is © Copyright 2009-2024, A B Cryer, All Rights Reserved. Cookie policy.