Group 9 Media types a SPAC to fund acquisitions – TechCrunch

Group Nine Media forms a SPAC to fund acquisitions – TechCrunch

Group Nine Media — which owns Thrillist, NowThis, The Dodo, Seeker and PopSugar — is the newest firm to kind a SPAC, in keeping with a filing with the SEC.

These blank-check companies, as they’re additionally identified, have turn out to be a preferred solution to raise money from the public markets. The submitting says that Group 9 is making a SPAC “for the aim of effecting a merger, capital inventory change, asset acquisition, inventory buy, reorganization or comparable enterprise mixture.”

The corporate goes on to assert that it doesn’t have any particular acquisition targets in thoughts, and that there haven’t been “any substantive discussions.” But it surely says it’s fascinated about digital media corporations, in addition to these in “adjoining industries” corresponding to social media, e-commerce, occasions, digital publishing and advertising.

The concept of consolidating digital media properties has been a recurring theme from executives over the previous few years. BuzzFeed CEO Jonah Peretti, for instance, has mentioned that a consolidated digital media entity might have extra clout in negotiations with Fb and Google, and he not too long ago struck a deal to acquire HuffPost from Verizon Media (which additionally owns TechCrunch).

Group 9 is itself a roll-up of beforehand impartial digital media corporations, led by CEO Ben Lerer (pictured above) and rising final 12 months with the acquisition of PopSugar. The Wall Avenue Journal reported recently that the corporate was exploring a SPAC.

“We imagine the digital media sector is primed for consolidation, as digital media corporations want a scaled platform with environment friendly portfolio infrastructure to compete within the ecosystem and return worth to shareholders within the long-term,” Group 9 says within the submitting.

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