Business Models, Coherence, And Not Being an Agitated, Sickly Lab Rat

I had a couple conversations today which turned on the role of private equity in today’s economy and the importance of business models that align with a company’s purpose. Both of them were relevant to our soon to be completed drive for the TPM Journalism Fund. In the new episode of the TPM Social Club podcast Joe Ragazzo and TPM head of product Derick Dirmaier talk about the impact of private equity on sports. This involves caricatures of course but I think of Venture Capital and Private Equity as sort of twin players, often with perverse and deleterious effects on the lives of companies, the first on the ascent of the rocket, the second on the descent. Both have had deeply negative impacts on the news and journalism industry. In both cases that’s because scale and market dominance don’t play the same role in the news business as they do for social media or the production of widgets and many other kinds of business. Most require being rooted in the lives of particular communities, often geographical communities, or having a more than transactional relationship with an audience.