![]() "They should do fine in terms of surviving, but what kind of outcomes can be expected past this point?" Next year will be much tougher, according to one media investor who doesn't have stakes in Vox or Group Nine. As The Information's Martin Peers noted, if a new Vox Media-Group Nine were to trade at the multiple at which BuzzFeed shares are currently trading, it would be worth close to $1 billion, roughly its peak valuation from 2015.ĭigital media companies will be challenged to demonstrate to street investors that they can replicate advertising's blockbuster 2021 - a bounceback from the first year of the pandemic. Investors like NBCUniversal, which poured money into Vox Media in the heady days of sky-high digital media valuations, might not be ready to celebrate yet. The company expects to generate $700 million in revenue next year, the Journal reported.Įarly on in the talks, Group Nine CEO Ben Lerer offered to let Vox Media CEO Jim Bankoff take the reins of the combined entity, clearing the way for a more seamless deal as they ironed out the details, according to two people with knowledge of the deal. The Wall Street Journal, which broke news of the deal, reported that Vox Media shareholders would have a 75% stake in the new company, with 25% for Group Nine. The SPAC market has cooled, and BuzzFeed's stock has been performing poorly thus far.Ī few months later, the two parties reengaged on a traditional merger, the knowledgable source said, with both concluding that a marriage of Group Nine's entertainment and social media-focused outlets with Vox Media's journalistic and podcasting muscle would give it scale to better compete for ad dollars in the fast-consolidating digital media ecosystem. That agreement would have mirrored the path that BuzzFeed ultimately took when it acquired Complex as part of its own SPAC agreement. Group Nine reached out to Vox Media earlier this year to gauge its interest in combining as part of Group Nine's SPAC, which had formed late last year, according to the person with direct knowledge. The company is expected to continue pursuing deals, particularly in the podcasting space, as it further weighs its next steps, which could include an eventual IPO, according to a person with direct knowledge of the deal. The deal is the latest maneuver in the fast-consolidating digital media landscape, but the question remains as to what comes next for the new Vox Media. This story is available exclusively to InsiderĪnd start reading now. Account icon An icon in the shape of a person's head and shoulders.
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