Against this backdrop, the BE Industrial/Service companies posted a relatively flat performance with a 0.17% decrease in revenues to $18.7 billion and a 2.26% decrease in payroll to 55,441 workers. To survive and grow, these companies have operated with a sense of urgency, finding fresh sources of capital and new business. After nearly 70 years as an independent family-owned business, Johnson Publishing Co. L.L.C. (No. 30 on the BE Industrial/Service companies list with $105 million in revenues) sold an equity stake to the Special Investments Group of JP Morgan Chase. While it marked the first time it took outside investment, JPC still retains more than the 51% African American controlling interest required to be included on our roster. The capital has been used, among other measures, to reinvigorate branding and fortify the company’s digital presence.
In some cases, such activity has led to greater shareholder value but an end to black-owned status. For example, last year Bob Johnson and RLJ Development President and CEO Thomas J. Baltimore Jr. orchestrated the roll-up and merger of the hospitality development and investment firm with two affiliated private equity funds and the subsequent initial public offering of RLJ Lodging Trust. Trading on the New York Stock Exchange, RLJ is one of the nation’s largest REITs with 141 Marriott and Hilton hotels in 20 states. And in 2010, Bob Johnson sold his controlling interest in Bobcats Sports & Entertainment (No. 34 on the BE Industrial/Service companies list with $100 million in revenues), parent of the NBA franchise Charlotte Bobcats, leading to the addition of a prominent freshman to the BE 100s chief executive bench: former basketball superstar Michael Jordan.
Atlanta-based Jackmont Hospitality Inc. (No. 63 on the BE Industrial/Service companies list with $50 million in revenues), continues to sizzle after a $40 million transaction to add six existing T.G.I. Friday’s restaurants to its 15 existing outlets and holds development rights for at least five more over the next five years. And Detroit-based Bridgewater Interiors L.L.C. (No. 3 on the BE Industrial/Service companies list with $1.7 billion in revenues), which General Motors awarded seat production contracts for its Chevy Malibu and Chevy Impala brands, would not be opposed to becoming more vertically integrated through the acquisition of a seat parts manufacturer.
Competition is fierce though. Silver Spring, Maryland-based TV One L.L.C. (No. 28 on the BE Industrial/Service companies list with $121.3 million in revenues) restructured to expand offerings and grow audience. For one, President and CEO Wonya Lucas joined the network last August from Discovery Communications. To stay competitive on crowded airwaves, Lucas will keep popular programs such as Unsung and Life After and add new, original programming to its lineup: Love Addiction, a relationship intervention show, and My Mama Throws Down, a cooking competition from the producers of Iron Chef America.
Despite figures from Nielsen Media Research that total subscribers grew to 56.3 million in December 2011, Lucas must contend with challengers that threaten market share: media mogul Oprah Winfrey’s network, OWN, a unit of Harpo Inc. (No. 14 on the BE Industrial/Service companies list with $309 million in revenues), has developed a slate of black-oriented fare, while TV One partner Comcast announced backing channels from Sean “Diddy†Combs and Earvin “Magic†Johnson. [Black Enterprise Business Report and Our World with Black Enterprise, both owned by the media company that publishes this magazine, also air on TV One.]
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