Vox takes Group Nine in order to scale, scale, scale
The Future. Vox Media is acquiring Group Nine Media, combining two of the biggest players in digital publishing. The combined company hopes that the scale will woo digital ad dollars that have all but disappeared to social platforms and tech giants. With the footprint that Vox and Group Nine will have, what we may be witnessing is the birth of new digital conglomerates… which is only just beginning.
In the world of digital publishing, the big fish are eating big fish now.
- Vox Media (home of Vox, Eater, SB Nation) has agreed to acquire Group Nine Media (home of NowThis, The Dodo, PopSugar, Thrillist).
- Vox will have 75% control of the new company, with Group Nine maintaining the other 25%.
- The combined company is expected to rake in $700 million in revenue and $100 million in profit next year.
With the combined capital, analysts believe the company will target more acquisitions.
Digital ad dollars are the North Star of publishing, and with Facebook, Google, and other social platforms gobbling them up, digital publishers have no choice but to scale to survive… especially if they want to expand into money-making ventures like events, e-commerce, and high-end streaming film and TV.
The combined company could scale even further with an IPO in the near future, following in the footsteps of competitor BuzzFeed (with mixed results). Prior to the acquisition, Group Nine had been exploring going public via a SPAC, but seemingly shelved those plans.