BET Holdings, Vanguarde Media Ink Five Magazine Deal

Posted on February 25, 2000

BET Holdings II, Inc. (BET), and New York-based Vanguarde Media, Inc. have executed a magazine publishing and investment arrangement which gives the two companies joint ownership of five magazines. The combined entities will reach a monthly readership of 2.2 million readers. Robert Johnson, chairman and CEO of BET Holdings, and Vanguarde Media Chairman and CEO Keith Clinkscales made the announcement.

Under the agreement, Vanguarde takes over management of BET's current magazine properties - Emerge, BET Weekend and Heart & Soul -- in addition to maintaining control of its own titles, Impact and Honey. BET and Vanguarde will have joint ownership of the five publications, with BET and Provender Capital Group, LLC, a private equity fund based in New York, as substantial shareholders in Vanguarde overall. Clinkscales and his management team will oversee the day-to-day operation of the magazines, with the authority to pursue other publishing investments.

``BET retains a leadership position in magazine publishing, but has now joined forces with a proven successful operation such as Vanguarde,'' said Johnson. ``Keith Clinkscales is one of the most respected executives in the publishing business, which makes this relationship an ideal strategic fit for both parties.''

``Partnerships such as this one are based on strength of assets and clear confidence in the leadership in charge. BET and Vanguarde Media are very familiar with one another's strengths and long-term business objectives,'' said Clinkscales, whose career includes creating and launching Vibe and Blaze. ``By bringing together our five powerful magazine titles, we've set in motion a true brand-building strategy where advertisers can find the most effective means ever of reaching a multi-cultural, trend-setting audience.''