A month after BuzzFeed introduced that it could purchase HuffPost,
Group 9 Media, the proprietor of TheDodo, NowThis, Thrillist, Seeker and PopSugar, despatched a robust sign that it plans to get larger.
The corporate, led by the chief govt, Ben Lerer, fashioned a particular goal acquisition firm, based on an S.E.C. filing on Monday. Within the submitting, Group 9 stated it deliberate to merge with related firms however didn’t cite any agreements with particular companions.
“We initially intend to focus our search heading in the right direction companies within the digital media and adjoining industries, together with the social media, e-commerce, occasions, and digital publishing and advertising and marketing sectors,” the corporate stated within the submitting.
“Our goal,” it added, “is to create a scalable digital media platform.”
Group 9 bought its begin in 2016, when the businesses behind Thrillist, NowThis and TheDodo joined with Seeker, a digital community belonging to Discovery Communications. Discovery kicked in $100 million to assist to new firm get going, and Mr. Lerer, the previous head of Thrillist, grew to become its chief.
Group 9 expanded final yr when it acquired PopSugar, an internet site with a buying platform, a cosmetics line and a competition enterprise, from the husband-and-wife duo Brian and Lisa Sugar. That deal got here as a part of a wave of consolidation within the digital media enterprise, after Vox Media’s buy of New York Media, the corporate behind New York journal, and Vice Media’s acquisition of Refinery29.
After the BuzzFeed-HuffPost merger and Group 9’s federal submitting, digital media firms appear more likely to proceed the development of becoming a member of forces in an business that isn’t the wide-open subject it was. Google and Fb have grabbed advert income away from publishers, whereas Twitter, Fb, YouTube and Twitch have monopolized the time and a spotlight of would-be readers. And lots of legacy media shops have turn into net savvy, hiring digital journalists, viewers specialists and engineers away from standard websites, whereas additionally determining methods to steer their clients to spring for costly subscriptions.
With the formation of a particular goal acquisition firm, a preferred monetary instrument that successfully permits privately held firms to go public with out an preliminary public providing of inventory, Group 9 moved nearer to creating extra offers. A Group 9 spokeswoman declined to remark.