Who Owns the Financial Media?
Someone owns every company, be it retail, technology, financial services, media, etc. It could be a single owner, a group of people, or even the public who trade in their shares. Who owns a company combined with its model for making money determines what the company sells and who the people that run it answer to.
NEST, for example, is owned by Dan Dillard, and we make money by helping people create sound financial plans and optimize their investments to achieve their goals. Anyone who works for NEST works in service of these priorities. If they don’t, then Dan holds them accountable. However, financial media companies are not held to the same standard.
We know this is obvious and elementary, but it’s important that we point it out because people are relying on media companies to help them make investing decisions.
Financial Media Companies’ Priorities
Financial media companies’ product is primarily your attention, which they capture by creating content so they can then sell advertising space. The other product is paywall content, which only subscribers can access.
Their product is not investing advice or helping you manage your portfolio. And their success metrics have nothing to do with whether or not your assets are growing. Financial media company profits do not rely on your success, but rather your continued consumption of their content.
Additionally, it’s important to know who owns these companies, because ultimately, they are controlling the message that financial media outlets are putting out. They control what they cover, how they cover it, and just as importantly, what they omit.
A look at who owns some of these big financial media outlets might surprise you. And hopefully give you pause. There’s a lot of overlap and a lot of power to control the message that you’re getting and that the credulous are basing their investing strategies off of. Can you say “conflict of interest?”
A Closer Look at the Players
CNBC
Owned by: NBCUniversal (Comcast: CMCSA)
Partnerships: Dow Jones, MarketWatch, The Wall Street Journal, Barron’s, Yahoo Finance
FOX Business News
Owned by: FOX Corporation (Murdoch family) – FOXA
Partnerships: News Corp, Dow Jones, Barron’s, WSJ
Barron’s
Owned by: Dow Jones (News Corp: NWSA)
Of note: Runs the Barron’s 400 Index – a clear financial incentive
Yahoo Finance
Owned by: Yahoo (Verizon: YHOO, VZ)
Partnerships: CNBC
The Street
Owned by: The Arena Group (formerly Maven: AREN)
Bloomberg
Owned by: Bloomberg L.P. – 88% by Michael Bloomberg (source)
Private: No public financial scrutiny or reporting
Motley Fool
Privately held with VC investors (BIA Digital Partners and Patriot Capital)
Revenue model: Selling financial products – which influences editorial priorities
MarketWatch
Owned by: Dow Jones (News Corp: NWSA)
Paywalled, part of the same family as WSJ and Barron’s
The Takeaways
The big players in financial media are, you guessed it, media companies. Whether they’re using an advertising-based or subscription model, the success of your personal investments isn't what's making them money. Rather, what does make them money is content that’s enticing enough to get you to stay on their site or buy their content.
If they’re selling products, their goal is to sell you products. It’s not to give you intel that enables you to DIY what they’re selling. And damn, Rupert Murdoch might have more influence than any one person should be able to.
One person consolidating that much power highly likely leverages it for their own agenda and gains.
We’re not here to say that everything the financial media says is wrong. We’re saying that it’s hard to tell the good from the bad, and you shouldn’t be staking your financial future on it. These companies are trying to sell ad space, and they’re beholden to their stakeholders. Not you.
We certainly don’t rely on them. We go straight for the data — no advertising model, no corporate overlords. Just real macroeconomic research. Read more about our approach to Modern Portfolio Theory and why we believe there’s a better way. Or check out our deep dive on financial media bias.
At NEST, we couple unbiased data with nearly 30 years of experience to build actively managed, optimized portfolios. Ready to see what that looks like? Schedule a no-obligation call with us.
We are an Austin-based, boutique financial firm passionate about helping our clients build their financial nest with confidence.
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Email us: info@nestfinancial.net
DISCLAIMER: We are legally obligated to remind you that the information and opinions shared in this article are for educational purposes only and are not financial planning or investment advice. For guidance about your unique goals, drop us a line at info@nestfinancial.net.