ASX-listed Vinyl Group acquires The Brag Media
Australia’s only ASX-listed music company, Vinyl Group (ASX: VNL), has today entered into an agreement to fully acquire The Brag Media and its network of mastheads and events.
A second round of investment by WiseTech global CEO and founder, Richard White, has also been announced today by way of an $11 million placement and debt facility.
The Brag Media publishes its owned outlets, TheBrag.com, The Music Network and Tone Deaf, as well as Penske Media Corporation (PMC) titles Rolling Stone and Variety Australia and New Zealand.
It also exclusively represents local digital audiences for over a dozen other titles including Rotten Tomatoes, IndieWire, The Hollywood Reporter and HypeBeast.
Vinyl Group will pay $8 million in cash to acquire 100% of the company, with a further $2 million payable in cash or stock based on financial performance.
FY23 results found that The Brag Media generated $8.39 million in revenues, including $334,824 in net profit. It has seen an average growth of 125% over the past two financial years.
The purchase, funded by White’s $11 million placement and debt facility, aims to grow the company’s future growth.
“Vinyl Group’s suite of products work together to empower participants of the music ecosystem and reach all corners of the creator economy, and we can’t wait to start working with the iconic mastheads that Luke [Girgis] and The Brag Media have successfully developed in Australia,” said Vinyl Group CEO, Josh Simons.
“We’ve identified several impactful synergies between the two businesses that will deliver immediate cost efficiencies and revenue, including streamlining Vampr’s in-app ads business and leveraging The Brag Media’s impressive audience reach to bolster Jaxsta, Vinyl.com and Vampr in the market.”
As part of the deal, Luke Girgis, CEO of The Brag Media has entered into a full time employment agreement as publisher and managing director of the company.
Girgis said: “The next phase in the evolution of The Brag Media will take place under the umbrella of Australia’s only ASX-listed music business, and I couldn’t be happier about it.
“Right from the earliest discussions we had, it was clear that the Board, Josh and the team shared our vision for the future of the business, and I’m thrilled that they’ve made this commitment with us.
“I’d also like to acknowledge my co-founder and managing director Sam Benjamin. This business would not have reached the heights that it has without Sam’s investment, support, leadership and mentorship over the past six years.”
The Brag Media joins Vinyl Group’s portfolio of properties that include music credits business Jaxsta, music industry social-professional network and talent marketplace Vampr, and online record store Vinyl.com.
“I have watched closely as Josh has built Vinyl Group’s revenue and made substantial business gains since taking my initial investment,” White said.
“I’ve also noted that Luke and his dedicated team at The Brag Media have rapidly grown Brag into one of Australia’s most influential media and creative businesses.
“There’s no doubt that iconic brands like Rolling Stone and Variety make sense and add value to VNL. Combined under the leadership of Josh and Vinyl Group, the consolidated business and team will have a lot more growth levers and options.”
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Lauren McNamara is a journalist at Mumbrella, covering the creative and PR beat. She joined in November 2022 as editorial assistant, after completing a Bachelor of Communications (Journalism) at UTS.
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