Vox Media in talks to accumulate Group 9, based on firm memos

Vox Media is in superior talks to accumulate digital media firm Group 9, based on inner memos despatched by each corporations and obtained by CNBC.

Vox CEO Jim Bankoff and Group 9 CEO Ben Lerer despatched emails to staff after The Wall Road Journal first reported the information on Monday. Group 9 owns digital media property, together with PopSugar, NowThis, Thrillist and the Dodo.

Group 9 has held on-and-off merger talks with Vox, BuzzFeed and different digital media corporations for years, CNBC reported final week. Vox and Group 9 are each searching for extra scale as they attempt to higher compete with Google and Fb for promoting {dollars}.

Bankoff advised his staffers that the deal is not signed however is anticipated to happen shortly and can shut in early 2022. Lerer will take a board seat at Vox. Vox’s publications, which embrace New York Journal, the Verge, Eater, Curbed, Vox and SB Nation, will keep intact after the acquisition, the memo stated.

The all-stock transaction will give Vox 75% possession of the mixed firm, based on an individual conversant in the matter who requested to not be named as a result of phrases of the deal are personal. Lerer advised staff in his memo that he’ll maintain an all-hands assembly later right this moment or early tomorrow to debate the deal additional. 

Representatives from Vox and Group 9 did not instantly reply to requests for remark.

Bankoff stated his firm has no plans to go public. Nevertheless, earlier this 12 months Group 9 arrange a particular objective acquisition firm that could possibly be used to take itself public by way of a merger. The SPAC shouldn’t be getting used for this deal, however the entity will not disappear and the mixed firm may use it later, one other particular person stated.

BuzzFeed went public final week by means of a SPAC, and the inventory has since plummeted. BuzzFeed can also be seeking to roll up digital media corporations because the trade consolidates.

WATCH: BuzzFeed CEO Jonah Peretti on SPAC merger