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Showing posts from June 21, 2010

What's happening with Thomas Nelson?

B y now you have probably heard that the largest Christian publisher has been bought by Kohlberg & Company. This transaction raises questions about the future of Christian publishing. I don’t know that anyone has the answers, but it’s still worthwhile to look at this transaction to gain a better understanding of how the publishing industry works. One of the first things to look at is the purchasing company. Kohlberg & Company is a private equity firm. In other words, they make money by buying and selling companies. According to their website, they focus on “middle market” companies with values between $100 and $500 million. They make money by implementing changes that increase revenue and cash flow, giving the company more value in the eyes of investors, and selling the company, either to another company or in the form of stock. They aren’t publishing experts by any stretch of the imagination, so it should come as no surprise that Michael Hyatt is still at the helm of Thomas Ne...