![]() However, this IP is something that can be monetized in more ways than one. Neither of them are full-time employees at Vox, but instead, create a twice-weekly podcast called Pivot. Second, I think their partnership with Kara Swisher and Scott Galloway could be a template for an interesting business. ![]() This is going to be a critical part of scaling their advertising business, especially as 3rd-party cookies continue to lose their relevance. By combining with Group Nine, the entity will have a lot more data to work with. There are two areas that I am particularly interested in watching over the next couple of years.įirst, Vox Media rolled out its 1st-party data product Forte in late 2019. By merging, both companies now have far more heft than they would otherwise. For many of these digital media companies, they were stuck in the middle. Many in media talk about the barbell where you’re either niche on one side or a generalist with scale on the other. The deal makes a lot of sense from a scale perspective. While we don’t know what their definition of “profit” is, generating $100 million on $700 million would give them a 14% margin. That makes it bigger than BuzzFeed was at its SPAC. In 2022, it expects to generate over $700 million in revenue. In the immediate sense, this provides a pretty hefty scale to the combined business. It seems that the ego has left the room in this deal, which is good because this is a smart deal for both parties for a variety of reasons. Alex Sherman at CNBC cut right to the issue in a recent piece when he wrote, “industry consolidation has been blocked by two factors: Agreement on value and founder ego.” Major media consolidation has been discussed for years now, but the big players-BuzzFeed, Vice, Group Nine, BDG, and Vox-all saw themselves as the consolidators rather than the consolidated. On a pro forma basis, the combined company grew revenue by about 30% this year compared with last year, the people said. The combined company is expected to generate more than $700 million in revenue in 2022 and more than $100 million in profit, according to people familiar with the matter. Vox Media Chief Executive Jim Bankoff would helm the company, the people said. The companies are discussing an all-stock transaction that would give Vox Media 75% ownership of the combined company, with the remaining 25% going to Group Nine Media, the people said. First scooped by The Wall Street Journal and then confirmed by the companies, Vox and Group Nine are merging.
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