Scoop: CVC, Group Black partner on bid for Vox Media
CVC Capital Partners and Group Black are pursuing a joint bid to buy Vox Media, according to sources familiar with the matter.
Why it matters: The bid comes as the media sector is grappling with a tough economic climate and as CVC, the European private equity giant, is eyeing a consolidation move into more media assets across the U.S.
Driving the news: Last week, CVC and Group Black, a media collective, sent Vox a term sheet outlining details for a potential deal, sources tell Axios.
- Despite industry challenges, Vox remains a top digital media company, housing popular sites like Eater and SB Nation, plus Thrillist and Seeker which it owns after its Group Nine Media deal last year.
- Vox was valued at around $1 billion after a $200 million funding round in 2015.
Of note: Vox is not looking to sell the business at the moment, according to one source who spoke with Axios. The company declined to comment.
Yes, but: Even companies not seeking a sale are forced to consider an offer if the price is fair, and if such a move would be in the best interests of the company, its employees, and its shareholders.
Meanwhile: The CVC-Group Black pairing for Vox is the second potential transaction the two are eyeing together.
- Axios reported on Nov. 1 that CVC would help finance Group Black's plan to acquire BDG, formerly known as Bustle Media Group.
- Group Black is a media collective that's trying to get marketers and ad agencies to shift more of their ad spending to Black-owned media outlets. Part of its strategy involves acquiring digital media companies.
Zoom in: In fact, one source said that CVC is eyeing a broader media move across the U.S., where it would combine multiple media companies, extract synergies, and streamline the businesses.
- CVC declined to comment.
- "We don’t comment on rumors and speculation,” a Group Black spokesperson said.