BETting On Black.Robert L. Johnson Robert L. Johnson (born April 8, 1946) is an American businessman and the founder of Black Entertainment Television (BET), and was its chairman and chief executive officer. sells the largest African American African American Multiculture A person having origins in any of the black racial groups of Africa. See Race. television network to Sumner Redstone Sumner Murray Redstone (born Sumner Murray Rothstein on May 27 1923 in Boston, Massachusetts) is majority owner and Chairman of the Board of the National Amusements theater chain. Through National Amusements, he is majority owner of Midway Games, Viacom and CBS Corporation. and Viacom "BY THE YEAR 2000, BET HOLDINGS INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . WILL HAVE A MARKET valuation of a billion dollars," Founder, Chairman, and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Robert L. Johnson predicted in these pages just a few years ago. Well, he was wrong. BET's worth is actually closer to $3 billion. Just when we thought that Johnson could no longer surprise us, he did. In November, Black Entertainment Television announced that it would fade from black to white in a sale to Viacom Inc., one of the world's largest entertainment conglomerates. The media giant has agreed to pay $2.33 billion in stock and will assume an additional $570 million in debt, making Bob Johnson Bob Johnson may refer to:
What Johnson is doing is akin to what Ted Turner For other persons named Ted Turner, see Ted Turner (disambiguation). Robert Edward Turner III (born November 19 1938 did when he sold CNN CNN or Cable News Network Subsidiary company of Turner Broadcasting Systems. It was created by Ted Turner in 1980 to present 24-hour live news broadcasts, using satellites to transmit reports from news bureaus around the world. to Time Warner--becoming the largest shareholder and vice chairman in the company. The reviews have been mixed. On one hand, African Americans across the country lamented the loss of so significant a black-owned company. But at the same time, there was a collective "Bravo!" in salute to a man who has shown the world that a black company can garner such a high price. "A couple of significant things have happened as a result of this," says Ken Smikle, president of Target Market News, a research firm that studies black consumer behavior. "The deal has produced one of a few African American billionaires in America. We need to take pride in the idea that we are capable of playing with the big boys in the way that the big boys play." And then, of course, there's the thing few people are willing to say -- at least not out loud. pockets and various corn now in play, come to stand for better. IF YOU CAN'T BEAT 'EM, JOIN 'EM Johnson was not actively seeking a buyer when Viacom came a-courtin', although he was exploring his options. "We felt that BET, as an independent entity, would, like any other entity, have to address ways to compete aggressively against large conglomerates--leveraging all of their assets," he recalls. "And we concluded that this was an opportunity for us to align our brand with their brand and have access to the resources they would bring to bear." His first meeting with Viacom Chairman Sumner Redstone, coincidentally co·in·ci·den·tal adj. 1. Occurring as or resulting from coincidence. 2. Happening or existing at the same time. co·in , took place in May on the same day Johnson's intention to start D.C. Air was announced. The U.S. Department of Justice is currently reviewing the United/U.S. Airways airways Anatomy The 'pipes'–trachea, bronchi, bronchioles–through which air passes to and from the alveoli. See Small airways. deal that will enable Johnson to start D.C. Air. Johnson says, "We'll get a decision soon] and it will happen while Secretary [Rodney] Slater is head of the Transportation Department and Clinton is still in office." Most others believe it ain't gonna happen, but that sort of lofty optimism is vintage Johnson. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Johnson, he decided to sell for three reasons: "One was that we got a very good price. Second, we will continue to be autonomous in the management of the business. And third, we've got the support of one of the largest media conglomerates in the world to help us better serve our core market," he says. Viacom owns CBS (Cell Broadcast Service) See cell broadcast. , Paramount Pictures, the United Paramount Network, MTV Networks MTV Networks is a division of media conglomerate Viacom that oversees the operation of many TV network and Internet brands, including the first MTV channel. The company was established in 1984 after Warner Communications and American Express decided to divest the basic cable (MTV MTV in full Music Television U.S. cable television network, established in 1980 to present videos of musicians and singers performing new rock music. MTV won a wide following among rock-music fans worldwide and greatly affected the popular-music business. , VH1, and Nickelodeon), Showtime show·time or show time n. 1. The time at which an entertainment, such as the showing of a movie, is scheduled to start. 2. Slang The time at which an activity is to begin. Noun 1. Networks, and Comedy Central. It also owns several radio stations. "It could have been a strategic alliance, it could have been a partial ownership, or a direct acquisition like this," adds Johnson. "We decided that trading in our stock and remaining in control of the business was an excellent way to achieve [these goals]." MAKING THE COMMITMENT The terms of the sale include a five-year contract for both Johnson and BET President and COO Debra Lee. Johnson says money was never a primary issue. "It was more about [both companies] agreeing that Debra and I would have the freedom to keep the management team together and to keep our commitment in providing the black community with entertainment and information that's relative to that marketplace," he explains. In addition, Johnson and Lee received a commitment from Viacom to "help us grow some of our other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. , like BET on Jazz [the company's 24-hour cable jazz station], with global distribution and the ability to leverage all of [Viacom's] brands in negotiations with cable operators." The deal is actually good news for other black-owned media outlets. "Viacom will bring its own self-interest into the battle over advertising equity," says Smikle. "It's one of the largest media conglomerates in the world, and now it suddenly has to be interested in why black media is not getting its fair share of ad dollars. Whatever influence it can exert on correcting that problem will benefit all of the other black-owned media outlets." That may depend, in large part, on what kinds of programming changes the viewer sees. In addition to infomercials and music video programming, BET's most recent lineup now includes a morning talk show called Oh Drama!, a primetime news program, a monthly biography series, and the nightly stand-up comedy  This article or section may deal primarily with the U.S. and may not present a worldwide view. show Comicview. These changes
illustrate an effort to beef up programming."I think there is a lot of room for improvement," says Jessica Reif Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. , a Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. analyst who follows the industry. "They [BET] never spent a lot of money, but under Viacom, certainly they'll have the wherewithal where·with·al n. The necessary means, especially financial means: didn't have the wherewithal to survive an economic downturn. conj. Wherewith. pron. Wherewith. . They will be able to leverage the infrastructure [Viacom has] for affiliate sales and advertising sales, and in turn increase distribution and probably [increase] subscriber fees. I think there's a lot of potential for cross-promotion between the networks and between Viacom Infinity properties. If the ratings go up, the ad rates will go up," Cohen concludes. BET's average rating from January 1, 2000, to October 30, 2000, was 0.41, which translates to 248,000 households, reaching approximately 62.4 million cable television subscribers. Angela Palmer, director of business development, affiliate, and community relations 1. The relationship between military and civilian communities. 2. Those public affairs programs that address issues of interest to the general public, business, academia, veterans, Service organizations, military-related associations, and other non-news media entities. at New Urban Entertainment Television in Chevy Chase, Maryland Chevy Chase is the name of both a town and an unincorporated Census-Designated Place (CDP) in Montgomery County, Maryland. In addition, a number of villages in the same area of Montgomery County include "Chevy Chase" in their names. , believes the sale "validates the urban market's worth as an economic entity because for so long we were virtually ignored as a buying audience. [The sale] validates our economic strength and value to business." NUET is the latest entrant en·trant n. One that enters, especially one that enters a competition. [French, from present participle of entrer, to enter, from Old French; see enter. into the industry, and plans to provide acquired and original urban-oriented programming, such as movies, comedy, drama series, music, religion, and news. Johnson acknowledges that "Viacom paid for two things: our distribution into black households and the desire of advertisers to reach that distribution. That says to me that if I'm a black company with a relationship with the black consumer, my value has gone up dramatically. [This deal] has created a shift in the value of the black consumer. And if we're successful in getting Madison Avenue Madison Avenue, celebrated street of Manhattan, borough of New York City. It runs from Madison Square (23d St.) to the Madison Bridge over the Harlem River (138th St.). In the 1940s and 50s, some of the major U.S. to drop what we call the `black discount ad buy,' it will add even more [value]." THE REAL WORLD Palmer did not miss the opportunity to point out that "one of the things that obviously puts us in a good light is that we are an African American company providing services to our own." Ouch. She has a point, though. How will viewers react to the fact that the company will be white owned? "From a personal perspective, it hurts to see it go out of black hands," says Patricia Keenan, president of the National Association of Minorities in Communications. "But from a business perspective, you realize that the potential is just so wonderful when you marry the resources of Viacom with the talent at BET. So you hope that its potential outweighs its no longer being black owned." Target Market News' Smikle has a more practical perspective. "If you watch Tavis [Smiley See emoticon. smiley - emoticon ] already, who else are you going to watch instead, even as an act of protest?" he asks. "What BET offers is so unique that folks are going to continue to watch it because there aren't many alternatives. And when you get to be as large as BET, there are only a few places where you can cash out," he adds. Smikle also believes Viacom will not attempt to "whitewash whitewash, white fluid commonly used as an inexpensive, impermanent coating for walls, fences, stables, and other exterior structures. It varies in composition, being generally a mixture of lime (quicklime), water, flour, salt, glue, and whiting, with other " the channel. "BET as a division becomes their primary entree into the African American market. They already own UPN UPN User Principal Name (Microsoft Windows 2000) UPN United Paramount Network UPN Unión del Pueblo Navarro (Navarrese People Union) UPN Umgekehrte Polnische Notation and its black programs, but acquiring BET allows them to do so much more." The recent start up of operations like NUET and the Atlanta-based MBC (Multimedia Benchmark Committee) A graphics benchmark that provides MPEG-2 and other tests. See GPC. , a black family-values and lifestyle network, are strong indicators of the significant growth of the black consumer market. It also sets up a new challenge for BET to see how well it can compete against other black stations. Viacom's desire to buy BET "more or less reinforces what NUET has been saying, that there is a demand in this market. BET has been the only player in the African American market I think there's room for a second and even a third black station," says Ian Briggs Ian Briggs is a television writer who has written for BBC programmes Casualty and Doctor Who. Briggs wrote two serials for Doctor Who, Dragonfire and The Curse of Fenric, both featuring Sylvester McCoy as the Seventh Doctor. , an analyst for The Chapman Company in Baltimore. He also believes other large media companies would like to have a strong foothold in the black market and will make room for additional stations on cable systems. TO BE CONTINUED This article is about the Elton John box set. For the plot device commonly featuring the phrase "To be continued", see Cliffhanger. To Be Continued BET Movies/Starz!, its magazine division, and the four BET restaurants are not included in the deal. Nor is the deal Johnson negotiated with Vanguarde Media, a significant, but undisclosed investment in the media conglomerate BET Holdings made (see "As the Page Turns," September 2000). As Johnson becomes more involved in getting regulatory approval for D.C. Air, Debra Lee will continue to run BET's daily operations. "She is, in my opinion, the best person to run BET now. She has a dynamic team in place that has doubled the value of the company almost every year since Debra's been COO. I have every confidence she can run the company and not miss a beat if I had to spend more time focusing on D.C. Air," says Johnson. For now, both he and Lee are committed to their five-year contracts. "I can definitely see myself here beyond that," says Lee. "It's hard to predict what happens after five years, but that's not an end date by any stretch of the imagination." " Johnson's philosophy is simple: "I chart my own course," he says. "Don't let anything stop you. Even when you run into challenges, that's part of the game. Push them aside, go around or over them. However you do it, you can make it happen." Works for Bob. A Closer Look at BET and Viacom BET's Corporate Structure Remains the same, except that Robert L. Johnson, who will remain chairman and CEO, will report to Mel Karmanzin, Debra Lee will also remain president & COO. BET Movies/Starz! Four BET restaurants Vanguarde Media BET Action Pay Per View BET Divisions Sold to Viacom Black Entertainment Television BET on Jazz: The Cable Jazz Channel BET International BET Books BET Holding's interest in BET.com BET's programming interest in two XM Radio Satellite program channels (Urban AC and Jazz) BET Pictures II Viacom's Subsidiaries CBS Television Network CBS Enterprises CBS Television Stations Division Comedy Central Viacom Plus Viacom Consumer Products Famous Music Publishing MTV Networks Nickelodeon VH1 Paramount Pictures Paramount Home Entertainment Famous Players United International Pictures (UIP) United Cinemas International (UCI) United Paramount Network (UPN) TNN CMT Showtime Networks Inc. (SNI) Blockbuster Simon & Schuster Infinity Broadcasting Infinity Outdoor TDI Worldwide Robert L. Johnson Having the Time of His Life
1980 On January 25, BET debuts on cables across the country, airing
for two hours per week.
1980 BET reaches 3.8 million households.
1982 BET begins transmitting for six hours daily.
1984 HBO, a subsidiary of Time Inc.. becomes a shareholder.
1984 BET gains 7.6 million subscribers and begins transmitting
24 hours a day.
1984 Johnson invests $100,000 to form District Cablevision, Inc.
1989 BET Holdings earns $4 million.
1990 BET grosses $50,8 million, up 41% from previous years.
1991 BET becomes the first company owned and controlled by African
Americans to be traded on the New York Stock Exchange.
1991 BET reaches 32 million homes.
1992 BET's company of the year
1993 BET reaches 35.8 million homes.
1993 BET worth $61 million.
1993 BET acquires a pay-per-view movie channel.
1993 BET acquires Action from Avalon Pictures.
1994 Revenues reach $97 million.
1994 Action Pay Per View is established.
1995 BET repurchases $58 million worth of its own stock
(approximately 15%) from Time Warner
1995 Revenues reach $109 million.
1996 Debra Lee appointed executive vice president of strategic
development and general counsel, president, and COO
of the company.
1996 Revenues reach $132 million.
1996 BET on Jazz is established.
1997 BET's company of the year.
1997 BET and Liberty Media Corp., which owns Encore Media.
developed BET Movies/Starz 3.
1997 BET awarded a casino license, an investment of $200 million,
BET Soundstage-themed Casino in Las Vegas formed.
1998 Johnson unveils BET Soundstage Club in Orlando, Fl.
1998 BET's market value is $1.2 billion.
1999 BET.com founded by Microsoft, the News Corp., USA. Networks
and Liberty Digital.
2000 BET Holdings et al launched BET.com.
2000 BET Holdings Inc. and Vanguarde Media join in a management
and investment agreement.
2000 Johnson sells BET to Viacom for close to $3 billion.
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