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.