Is there trouble ahead for Group Black?

As AFROTECH™ previously reported, Group Black is a collective launched in the wake of the COVID-19 pandemic with a mission to advance Black media conglomerates. Founding member companies include ESSENCE, Holler, PlayVS, Afropunk, and The Shade Room.

Richelieu Dennis, Bonin Bough, and Travis Montaque founded the collective and, in 2021, announced a $75 million commitment from GroupM as part of a larger effort to deploy at least $500 million in Black-owned media.

“Group Black is providing a real, tangible way for Black ownership to take root and thrive in an environment that has traditionally excluded or marginalized Black ownership,” Dennis said in a 2021 statement.

“I’ve leveraged my career and businesses in the consumer products, finance, and media universe to champion equity, diversity, and wealth creation across industries,” Dennis said at the time.

“For change to persist, we can’t make subtle modifications to the existing universe; we need to carve out new space for voices to be heard, bolstered, and amplified. Group Black’s approach of ingenuity and inclusion is the next chapter in ‘breaking the walls’ of exclusion in the media industry,” he continued.

Portrait Media Group

Group Black launched a new venture this summer called Portrait Media Group, which Bough described in a LinkedIn post as a “people powered AI-driven media company that unlocks growth for brands targeting, Gen Next,” that consists of “Black, Latin, Asian, and multi-ethnic audiences and values-driven white consumers who are shaping what comes next in media and marketing.” 

“We’re evolving — not abandoning — our foundation. With Portrait, we’re expanding our lens from just demographic reach to attitudinal resonance,” Bough wrote in the post.

“We call this next-gen audience Gen Next — a values-driven, culturally fluent segment that spans race, age, and background. They’re defined by mindset, not just identity. And they represent a massive opportunity for brands that want to lead, not follow,” he continued.

Alongside these changes, Group Black announced it will rebrand to Group Black Holdings. 

Group Black Faces Challenges

Sources told Business Insider that ad dollars have rolled in slowly, and the company has had difficulties providing large audiences to advertisers at low prices. Since its inception, Group Black has placed bids to acquire Paramount-owned BET, Vice Media, and Vox Media, but was unsuccessful, and its deal with NBCUniversal ended in September.

Today, Bough is the only original co-founder of Group Black who is still employed by the company. Montaque resigned as CEO in June 2024, and Dennis reportedly stepped down more than a year and a half ago, notes Business Insider, though he remains on the Board. Several high-profile executives, including Ziff Davis CEO Vivek Shah, departed from Group Black’s board after Montaque’s departure. Shah’s company had invested $15 million in Group Black.

Group Black was also sued by two of its companies owned by Essence Ventures in October 2024. The suit claimed Group Black owed nearly $20 million and accused the collective of misusing funds to further Group Black and Holler, a media company owned by Montaque, per Business Insider.

Group Black claims Essence loaned it money and does not admit to any of the claims.

In May, Group Black was also sued by Audiomov, which claimed $181,000 in invoices were owed. However, lawyers moved to dismiss the case after a “partial payment” was received. The lawsuit was terminated in August, while the lawsuit with Essence is still active, according to Business Insider.

Dennis Calls for Removal Of Board

On Monday, Oct. 6, Dennis sounded an alarm in a letter that called for the removal of Group Black’s board members — which includes Bough — citing “serious concerns” and “wrongdoing and breach of fiduciary duty” by the board members, a separate article from Business Insider reveals. 

Dennis also accused Group Black of authorizing “exorbitant expenditures not reasonably connected to the company’s operations,” not paying vendors and business partners, hiring lawyers in a “wasteful attempt to devise frivolous defenses,” and not hiring an efficient board, the outlet notes.

“The allegations in Mr. Dennis’ letter, which the media apparently received the same day he sent it to Group Black, are categorically false and defamatory. The company conducts itself with integrity and will continue to do so. Our focus remains on advancing Group Black’s mission and business on behalf of our team members and shareholders,” Group Black said in a statement to Business Insider.

Per the outlet, Dennis — who owns a 10% stake in the company — has called for a special hearing on the issue to be put to a vote.