When the going gets tough, I daydream. To be quite frank, I’ve found myself daydreaming a lot over the past few months. So, when I first learned about China’s attempt to acquire ailing  magazine, Newsweek, my imagination shifted into overdrive. I find few things more tantalizing to waste my time musing over then the possibilities which exist at the intersection of US-China relations and the global media sector. Dying media companies are (or should be) an entrepreneur’s cornucopia; throw in the potential for Sino-US partnership, and it’s a bountiful feast for the mind. Or, at least, that’s how it is for me. Perhaps if I were Newsweek CEO Tom Ascheim I’d feel a bit differently right about now.

It should come as no surprise that the bid made by China based-Southern Media Group and Chengdu B-Ray Media was quickly rejected, despite Newsweek’s mounting financial losses and apparent readiness to sell. Continued distrust of the Chinese coupled with growing economic insecurity would make the sale of an American media brand to China more than unpalatable to the public. While no specific reason has been given, the timing and circumstances are just not right at this stage of the game and The Washington Post Company, owners of Newsweek, were likely well aware of that. But, analyzing the finer points is far beyond my scope of knowledge, so I’d like to get back to daydreaming while leaving in-depth commentary to the experts…

One of the wonderful things about losing oneself to the imagination is that it allows little room for laws or politics or impossibilities. So, as I was reading about the failed bid, I couldn’t help but tease myself with a big “WHAT IF” that I’d like to share with you. In a nutshell, China’s thwarted attempt to plant its editorial flag on a US-branded publication highlights dissimilar, but not incompatible, needs among two camps. The first- traditional American media companies- are tripping and tumbling over the breakneck pace of change. They need increased readership, more advertising dollars and, in my opinion, a more globally-minded voice to win back some of the audience that they’ve lost. The second- Chinese media buyers- are desperate to get their foot in America’s door. They want to learn more while bolstering their own reputation under the umbrella of a brand with prestige. However, it is doubtful that either party will get exactly what they want- at least not in the short-term.

So, given the fact that China is going to have a very difficult time acquiring a US media brand like Newsweek outright, why hasn’t the possibility for a Sino-US news media joint-venture been publicly explored (and if it has, why don’t I know about it)? Are we still that far off from being able to conceptualize an influential shared voice that bypasses political bantering and instead focuses on offering dynamic business, economic and cultural news? Consider, for instance, if Newsweek had taken the JV route instead. A few of the potentially positive outcomes may include:
- a transformation in the way we perceive media (we live in a globalized world, after all)
- a potentially broader audience on both sides of the fence
- more diverse, balanced commentary
- greater access to sources, advertising partners
- much needed capital-infusion
- a Chinese presence in US-media (which China is intent on gaining, like it or not)
- reputation as a risk-taker, innovator

There are also major considerations to make and hurdles to overcome in an arrangement like this, for example:
-What does the management structure look like?
-Who would be appointed as editor? Which side gets the final say?
-How do you address the issue of censorship and potentially warring ideologies?
-Which existing companies could handle the complexities inherent in an arrangement like this?
-Would a newly-established JV have a chance, given the challenges existing media brands now face?
-How do you position a new Sino-US media brand or transform an already established brand?

As I stated in the beginning of the post, I’ve been daydreaming, paying little attention to tradition or rules. Any family fortune that may have existed is long gone, the media maven of my ancestry has been dead for hundreds of years, and Michael Bloomberg hasn’t mailed me a check yet. The reality is, in between contemplating the “what if’s” I’m now looking for a job. So, I have resigned myself to accepting the fact that the media company of my dreams may just be that- a dream. But, as an American CEO or Chinese buyer in this world of pretend, possibility reads a bit like promise.

Have your say: Is a balanced Sino-US media company a good idea or an impossibility? Will China acquire a major US media brand in the near future and if so, how will the American public react? Would you read a Sino-US joint-managed newspaper or magazine? What am I missing here?

Commentary joint venture, media companies, Newsweek, Sino-US relations