People Incorporated (PPLI) Citi’s 2026 Global TMT Conference summary

Strategic transformation and simplification

• Undertook a major simplification strategy, consolidating assets and reducing corporate overhead to $45 million by Q1 next year.

• Core holdings now include a media business and a 26-27% stake in MGM, with an ongoing offer to acquire 100% of MGM.

• Actively selling non-core assets like Vivian Health and The Daily Beast, and anticipating a Turo IPO.

• Strong balance sheet with $1.3 billion in cash and $1.4 billion in debt, approaching net debt neutrality.

• Focused on unlocking value through asset sales, buybacks, and potential M&A.

Digital transformation and brand-centric strategy

• Transitioned from a magazine era to a digital era, now entering a brand era focused on leveraging long-standing brands.

• Search-driven traffic dropped from 65% to 21% over three years due to AI changes, but revenue grew for 11 consecutive quarters.

• Non-session-based revenue (Apple News, licensing, social platforms) now 44% of total, growing 19% in H1.

• Each brand pursues unique strategies across platforms like YouTube, Substack, and Instagram.

• Sales force packages audiences and events for advertisers, driving new revenue streams.

AI, licensing, and monetization models

• Facing declining search traffic as AI platforms retain users, prompting a shift to more durable, direct models.

• Licensing deals with OpenAI and Meta provide compensation for content used in AI training.

• Advocates for a pay-per-use model for AI-generated answers, similar to music industry royalties.

• Blocking crawlers increases leverage in negotiations with AI companies.

• Litigation against Google over ad tech monopoly could yield significant cash.