Group Nine Media Forms SPAC to Fund Acquisitions

Group Nine Media – the parent company of brands like Thrillist, NowThis, The Dodo, Seeker, and PopSugar – has recently filed with the SEC to establish a Special Purpose Acquisition Company (SPAC).

These types of entities, frequently referred to as blank-check corporations, have gained prominence as a method for securing funding through public markets. According to the filing, Group Nine is establishing this SPAC “with the intention of completing a merger, exchange of capital stock, acquisition of assets, stock purchase, reorganization, or a comparable business combination.”

The company states that it currently has no particular acquisition candidates identified and reports that no significant discussions have taken place to date. However, it expresses interest in digital media businesses, as well as companies operating in related fields including social media, e-commerce, events, digital publishing, and marketing.

The concept of combining digital media businesses has been a frequent topic among industry leaders in recent years. Jonah Peretti, CEO of BuzzFeed, has suggested that a larger, consolidated digital media organization could strengthen its position when negotiating with platforms like Facebook and Google. He recently finalized an agreement to purchase HuffPost from Verizon Media (also the owner of TechCrunch).

Group Nine itself was formed through the combination of several formerly independent digital media companies, and is currently led by CEO Ben Lerer (pictured above). The company expanded last year with the acquisition of PopSugar. The Wall Street Journal recently reported that Group Nine was considering a SPAC formation.

“We are confident that the digital media landscape is ready for consolidation, as digital media companies require a large-scale platform with streamlined portfolio infrastructure to effectively compete and deliver long-term shareholder value,” Group Nine explains in the filing.