Former Condé Nast Editor Plans a Vanity Fair for the Substack Era

A former editor at Vanity Fair has been working for greater than a yr to create a digital publication with a enterprise twist: Its writers will share in subscription income.

Think of it as Vanity Fair meets Substack, the subscription e-newsletter platform that has attracted big-name authors.

The new firm behind the publication, Heat Media, hopes to unveil it in the coming months, 4 folks with data of the matter stated. The start-up is partly the brainchild of Jon Kelly, a former editor at Vanity Fair who labored underneath its earlier editor in chief, Graydon Carter.

If all goes to plan, the start-up’s contributors would come with writers whose contacts embrace the energy elite of Hollywood, Silicon Valley, Washington and Wall Street. An annual subscription would price $100 and will embrace a day by day e-newsletter, a web site and entry to occasions, the folks stated. The publication doesn’t but have a title. One into account is Puck, the title of an American humor journal of the late 1800s and early 1900s.

Writers have been provided fairness and a share of the subscription income they’d generate, the folks stated. It’s one in all the first makes an attempt to align the new expertise financial system with extra conventional media establishments. The publication would depend on an algorithm to gauge what number of readers purchase a subscription due to a particular author, the folks stated. Mr. Kelly has actively recruited a few of his former colleagues, the folks added.

Another novel facet is the funding. One of the backers is the personal fairness agency TPG Capital, which might take three seats on the Heat Media board, with one going to its co-chief govt, Jim Coulter, the folks stated.

Another investor is 40 North Media, the funding arm of Standard Industries, a firm targeted on constructing supplies, the folks stated. David Winter, its co-chief govt, would additionally take a board seat.

Mr. Kelly declined to remark. TPG declined to remark. 40 North didn’t instantly reply to a request for remark.

Mr. Kelly left Condé Nast, the writer of Vanity Fair, in March 2019 and joined the personal fairness agency TPG shortly afterward. The chief of the agency, Mr. Coulter, is mates with Mr. Carter, and TPG backed Mr. Carter’s post-Vanity Fair enterprise, Air Mail.

The start-up’s enterprise mannequin represents an early try to mix Substack’s entrepreneurial system, underneath which writers can earn cash instantly from subscribers, with that of conventional publications.

For TPG, the funding would its newest in the media enterprise. In 2018, the agency joined with a former News Corp govt, Jon Miller, to invest in the “geek culture” web site Fandom, which lately acquired gaming website Focus Multimedia. Last yr, a TPG affiliate acquired the soccer site, and the agency lately introduced plans to acquire a stake in DirectTV.

The money from the two corporations would give the start-up some safety at a time when a few of the greatest gamers in digital publishing, comparable to BuzzFeed, Vice, Vox Media and Group Nine, have stumbled as the pandemic ravaged the advert business.

Mr. Kelly’s enterprise companions are Joe Purzycki, a founding father of the podcasting firm Luminary Media, and Max Tcheyan, who helped construct the sports activities web site The Athletic, the folks stated.

Two individuals who have seen a pitch deck on the firm’s plans stated that its potential rivals are the Washington information web site Axios, the tech information web site The Information and Vanity Fair.

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