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Busy owners turn to SPAC deals and buy several spider studios

Digital media entrepreneur Bryan Goldberg has joined his company as he prepares to sign a deal to publish it later this year.

Goldberg’s BDG Media Inc., the owner of a website for women that includes technical publications such as Bustle and Input, is the digital media company behind Some Spider Studios Inc. Is being acquired. Parenting website Scary mom, dad and dad, Goldberg said. BDG Media aims to be open to the public by merging with a special acquisition company. Or SPAC, He said later this year.

According to someone familiar with the issue, Some Spider’s all-stock trading estimates publishers at around $ 150 million.

Goldberg said in an interview that the deal would expand BDG Media’s business and give more influence to advertisers. According to people familiar with the issue, BDG Media is profitable and is moving at a pace of generating approximately $ 120 million in revenue this year. Some spiders expect to generate about $ 50 million in revenue this year, some say they plan to make about $ 10 million in profits.

Goldberg’s company has recently closed a series of deals to purchase rival websites as part of its publishing program. The company has acquired the youth site Mic and Elite Daily, fashion publication W Magazine, and Science Outlet Inverse.

“We’ve spent a lot of time talking to SPACs, so there’s a lot of excitement in our digital media rollup strategy,” Goldberg said. “Therefore, the deal is looking to the public market while both companies are still private.”

Private companies are flooding with special purpose acquisition companies (SPACs) to bypass traditional IPO processes and go public. The WSJ explains why some critics say investing in these so-called blank-checking companies is not worth the risk. Illustration: Zoë Soriano / WSJ

Digital media companies Popular SPAC model They aim to be public, raise capital and benefit long-time investors. Once seen as a natural acquirer for digital publishers, large media conglomerates have turned their attention to other places, especially their own builds. Video streaming service.. For such publishers facing a shortage of traditional suitors, SPAC offers a potential path to liquidity. Many are too small for a traditional initial public offering.

BuzzFeed Inc. announced in June Agreed to merge With 890 Fifth Avenue Partners, a special acquisition company. Vice Media Group Merge and publish In SPAC called

7GC & Co Holdings,

Executives associated with Group Nine Media Inc. have launched a SPAC to search. Media sector target..

Trading was boosted by a surge in digital advertising revenue after advertisers drastically curtailed spending early in the Covid-19 pandemic.Several publishers including

New York Times

Dow Jones, the parent company of The Wall Street Journal, has recorded significant digital advertising growth year-over-year. US companies are expected to spend 15% more on advertising in 2021 compared to the previous year. Journal reported..Still, most of the growth in digital advertising Went to a major technology company such as

Alphabet Of a corporation

With google

Facebook Co., Ltd.

Manhattan-based Some Spider is named after the line of the classic children’s book “Charlotte’s Web” and was founded in 2014 by e-commerce entrepreneur Marc Lore and online diaper retailer Diapers.com co-founder Vinit Bharara. I did.

Amazon

It acquired Diapers.com’s parent company for more than $ 545 million in 2011 and closed it in 2017.

SomeSpider CEO Vinit Bharara said he will remain an advisor to BDG after the acquisition.


Photo:

Some spiders

In an interview, Barara said she decided to sell SomeSpider because she could be more competitive with her rivals in the integration of digital media. With the help of some spiders, BDG Media has the scale needed to compete with industry leaders and plans to generate hundreds of millions of dollars in revenue over the next few years, Barara said.

“We are a powerful and independent digital media company,” says Bharara. “But these days, being able to work with larger players to become part of a larger scale can have even stronger consequences for our employees and shareholders. You need to think about it. . “

Bharara, who said he plans to remain a strategic advisor to BDG, said Goldberg and BDG Media are creating a parenting department and their commitment to build a bigger business around SomeSpider. Is shown. Most of the 125 employees of some Spiders will continue to work for BDG Media, he said. Barara plans to set up another company with her friend and longtime collaborator, Lore.

Write to Benjamin Marine Benjamin.Mullin@wsj.com

Correction and amplification
In previous versions of this article, the spelling of the entrepreneur Marc Lore’s name was incorrect. (Corrected on July 21)

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Busy owners turn to SPAC deals and buy several spider studios

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