ASX-listed music company Vinyl Group is paying $8 million to acquire youth publisher The Brag Media.
The Brag Media publishes TheBrag.com, The Music Network and Tone Deaf, and Penske Media Corporation (PMC) titles Rolling Stone and Variety in Australia and New Zealand.
It also represents local digital audiences for more than a dozen other titles including HypeBeast, Billboard, The Hollywood Reporter, Music Feeds, ComingSoon, Rotten Tomatoes, Game Revolution and IndieWire.
The Brag Media network reaches about ten million users per month with more than 40 million monthly page views.
Vinyl Group will pay $8 million in cash to acquire 100% of The Brag Media and its subsidiaries, with a further $2 million payable in cash or stock based on financial performance.
The Brag Media generated $8.39 million in revenue including $334,824 in net profit in the year to June.
The publisher has recorded average revenue growth of 125% over the past two financial years. The indicative combined Vinyl group revenue as at June 30 would have been $9 million.
The Brag Media CEO Luke Girgis will be publisher and managing director of The Brag Media. Girgis will receive five million options upon sale completion, vesting in two equal tranches.
Girgis says the next phase in the evolution of The Brag Media will take place under the umbrella of Australia’s only ASX-listed music business.
"I couldn’t be happier about it," he says.
Vinyl's CEO Josh Simons says the group’s suite of products work together to empower participants of the music ecosystem and reach all corners of the creator economy.
"We can’t wait to start working with the iconic mastheads that Luke and The Brag Media have successfully developed in Australia," says
"We’ve identified several impactful synergies between the two businesses that will deliver immediate cost efficiencies and revenue, including streamlining Vampr’s in-app ads business and leveraging The Brag Media’s impressive audience reach to bolster Jaxsta, Vinyl.com and Vampr in the market.”
The deal was announced as Vinyl investor Richard White, global CEO and founder of logistics software company WiseTech, made a $11 million placement to fund the purchase.
White says there’s no doubt that iconic brands like Rolling Stone and Variety make sense and add value.
"Combined under the leadership of Josh and Vinyl Group, the consolidated business and team will have a lot more growth levers and options," he says.
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