Vox Media and Group Nine Agree to Merge

Mr. Lerer said that his discussions with Mr. Bankoff started in earnest this summer. Group Nine had held previous discussions with Vox Media and other companies about a merger through a special purpose acquisition company, or SPAC, that it had created with the intention of going public.

“I felt I got an unbelievable education, not just sort of skin-deep, but actually got to see inside of so many companies,” Mr. Lerer said, adding: “It was clear that Vox was the best, I would say by really head and shoulders.”

The deal, signed on Monday night, is an all-stock transaction that is expected to close early next year. The terms were not disclosed. The new Vox Media would be among the largest media companies in the United States, with about 2,000 employees, Mr. Bankoff said, adding that Group Nine’s websites complemented Vox Media’s, adding that the Group Nine audience was younger.

“Group Nine is extraordinary at social, where there is so much growth,” Mr. Bankoff said. “Vox Media is, for instance, extraordinary at podcasting and has a big presence across our websites.” Both companies, he said, have robust studio divisions: “I don’t think there is a major premium streaming service that we’re not in business with.”

Digital media companies have been looking for ways to pay back investors and compete with Google and Facebook, which dominate online advertising. Recent consolidations include BuzzFeed’s purchases of HuffPost and Complex Networks, and Vice Media’s acquisition of the lifestyle publisher Refinery29. And Vox Media may not be done making moves, either through further acquisitions or by going public, Mr. Bankoff said.

Article source: https://www.nytimes.com/2021/12/13/business/media/vox-media-groupnine.html