BuzzFeed’s public debut came as it finalized its acquisition of Complex Networks. So Bankoff is in a stronger position to take Vox Media public, just as his peer Jonah Peretti, the CEO of BuzzFeed, did last week in a rocky but nonetheless historic occasion for digital media. The pair appeared Tuesday on CNBC, with Lerer saying that “scale is a path to optionality,” putting them in a position to acquire others and “take advantage of a marketplace where being small has been difficult.” The nature of the all-stock deal would leave Group Nine investors with a 25% stock in Vox Media because Group Nine’s investors include Comcast, and Vox Media’s include Discovery, Recode’s Peter Kafka points out that “two of the biggest media companies in the world could end up with stakes in the same digital media operation.” Bankoff will lead the combined company, with Group Nine Chief Executive Ben Lerer taking a director role on its board. “The business rationale behind this merger is to grow revenue, increase scale, and combine these incredibly powerful and complementary portfolios,” Bankoff told staff in his memo. The deal, first reported by the Wall Street Journal and confirmed shortly thereafter in a companywide memo sent by Vox Media CEO Jim Bankoff, is set to close early next year pending regulatory approval the combined company would bring in more than $700 million in revenue and more than $100 million in profit, according to the Journal. Vox Media is acquiring Group Nine Media, the publisher of sites such as Thrillist, NowThis, and the Dodo, a move that would combine the brands into one of the biggest online publishers in the digital space. The consolidation of digital media companies shows no sign of slowing down.
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