Within minutes of walking into New York City’s Soho House on Wednesday night, the club was abuzz with alumni exchanging stories — a few good laughs as well — about their days back in Hamilton.
Then, it was time to get down to business.
More than 100 alumni from the classes of ’85 to ’02 were eager to hear the latest installment of ’s CEO Conversations with Greg Blatt ’90 and Pete Sheinbaum ’92.
Blatt and Sheinbaum, Theta Chi fraternity brothers at who’ve remained good friends, are blazing new trails as young business executives.
Sheinbaum, chief executive officer of , a wildly successfully website and e-mail newsletter distributor focusing on young women, started the talk with a warning for young entrepreneurs: “Don’t lose focus. Be patient.”
“I’ve seen companies similar to DailyCandy that have tried to grow by getting really big, really fast,” Sheinbaum said. “The product ends up suffering; it’s a recipe for disaster.”
Sheinbaum’s patience paid off.
Though DailyCandy’s now a multi-million dollar success story, it started from truly humble beginnings.
When he joined DailyCandy eight years ago, the Internet start-up had neither a business plan nor financing, and the company leased computers because it couldn’t afford to buy them.
Despite that, Sheinbaum and his crew weren’t swayed by offers from investment companies to buy DailyCandy.
“We stayed true to our product. Whenever an interested party approaches you about acquiring your company, you have to ask tough questions. Will employees be taken care of? Will you be able to continue the creative spirit that’s behind your organization?”
Blatt, executive vice president, general counsel and secretary of , which owns more than 60 online businesses including Ticketmaster and Evite, is on the opposite end of the acquisition spectrum.
He’s in the business of buying companies like DailyCandy.
From an investor’s perspective, he said that it’s important to look at what he calls the “psychology of a deal.”
“You have to evaluate management’s motivation to sell,” said Blatt, who’s become a master at the art of a deal. He previously oversaw acquisitions for Martha Stewart Living Omnimedia.
When asked about the role of a liberal arts education in his success, Blatt summed it up with this: “The experience teaches you how to be adaptable and tackle challenges in a changing business world.”