Oct 7, 2019

Group Nine Media to acquire POPSUGAR Inc.

Group Nine Media said Monday that it has reached a definitive agreement to acquire POPSUGAR Inc., a lifestyle digital media company that caters to millennial women, in an all-stock transaction.

Why it matters: It's the latest media mega-merger between two venture-backed companies that are looking to consolidate for survival. Vice Media acquired Refinery29 last week for a reported $400 million.

By the numbers: The acquisition values POPSUGAR at $300 million and the combined company at $1 billion, per the Wall Street Journal.

  • Group Nine recently raised $50 million from Discovery, bringing its total amount raised to $190 million at a valuation of over $600 million, per the Journal.

Yes, but: Private company valuations exist only because certain investors say they do at a certain point in time. There's no guarantee an acquirer or the public market will agree. 

Details: According to a statement, the purpose of the merger is to give the combined company more scale for selling digital ads. It will also help Group Nine build its commerce and events businesses.

  • Group Nine will acquire POPSUGAR's commerce business, its affiliate marketing business POPSUGAR Shop, and its popular event franchise POPSUGAR Play/Ground.

Be smart: POPSUGAR has remained relatively below the radar, given all the recent talk about media mergers over the past few months.

  • In a statement, POPSUGAR founder and CEO Brian Sugar said the company has reached profitability over the past few years.

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Go deeperArrowOct 8, 2019

Group Nine and PopSugar announce joint leadership team

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Group Nine Media, which includes digital lifestyle brands like The Dodo, NowThis, Thrillist and Seeker, will announce a new leadership team Tuesday expected to go into effect after the completion of the company's recently announced acquisition of PopSugar Inc., a digital media company that caters to millennial women.

Details: Group Nine's corporate leadership team will include leaders from both companies relatively equally. Brands under the combined company will essentially keep the same leadership.

Go deeperArrowOct 29, 2019

Trump's 2016 online advantages persist and grow ahead of 2020

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Why it matters: Even amid a historic impeachment process, these patterns suggest Trump could have a significant media advantage over Democrats leading up to 2020 — though there's no guarantee that the end result will be the same.

Go deeperArrowOct 22, 2019