Discovery Communications has agreed to make a minority investment of $100 million for digital by entering into a strategic partnership with Group Nine Media - a new media holding company consisting of Thrillist Media Group, Now This Media, The Dodo and Discovery’s digital network Seeker.
Axel Springer will maintain its investment as the second largest shareholder. Ben Lerer, CEO of Thrillist, will become CEO of Group Nine Media. The merging of these millennial-focused brands will immediately create in Group Nine Media one of the largest digital-first media companies.
David Zaslav, president and CEO, Discovery Communications said, "The merger of these assets will bring together best-in-class management, led by Ben and his team, expertise in data analytics technology and global reach to create one of the world’s largest digital-first content companies attracting young passionate enthusiasts that advertisers want to reach."
"This is truly a ‘win-win’ scenario, allowing our brands the opportunity to remain independent and build our own future, while at the same time, having the support of one of the best media and entertainment companies in the world," said Ben Lerer, CEO, Group Nine Media.
“Each of our brands has found great success independently, but with consolidation of digital content companies around the corner, there is extraordinary value in all existing under one multi-brand roof. We will be stronger brands working together – we will have more influence; we will have better data and insights; we will be better partners to our advertisers; and most importantly, we will be substantial enough to make a real difference and stay ahead of the market,†added Lerer.
The partnership between Discovery and Group Nine Media will include a commercial agreement that will enable advertisers to reach their desired audience via true 360 opportunities across multiple platforms including linear, digital, social and live events.
In the future, Discovery will have an option to buy a controlling stake in Group Nine Media.
Capitalizing on the company’s strong foundation and capabilities across editorial, tech, data and monetization, Discovery’s investment will fund growth across all of these areas of the business – specifically, the expansion of the sales team and branded content studio, new vertical launches and expansive content development for all of its brands.
"We are big believers in digital journalism and its very exciting business perspectives. We look forward to continuing to strengthen our relationship with the Lerer family through this transaction and to work with Discovery to support the growth of Group Nine Media," said Jens Muffelmann, president, Axel Springer USA and CEO Axel Springer Digital Ventures.
“We’re thrilled to work even more closely with Discovery. They’ve been The Dodo’s lead investor and an incredible partner to us, and this feels like an organic and very exciting next step,†said Izzie Lerer, founder of The Dodo, who will continue to be responsible for the brand.
LionTree Advisors acted as exclusive financial advisor and Cooley acted as legal advisor to Group Nine Media on the transaction. Proskauer Rose acted as legal advisor to Discovery on the transaction.
