Junkee co-owner Piers Grove settles financial dispute with RACAT Group
Media entrepreneur Piers Grove, has sold his equity in youth publication Junkee to RACAT Group.
Piers Grove is one of the founders and publisher of the satirical news site Betoota Advocate. After Junkee was sold by oOh!Media to RACAT Group in December 2021, he was appointed the managing director and publisher of the publication, then managing director of Australian Geographic.
Crikey first reported that according to internal sources at Junkee Media, the brand is facing a mass exodus of employees, financial losses and internal dysfunctions.
Grove was reportedly not present in the Junkee office for a period of several months according to Crikey, as a result of medical leave caused by a stroke.
Additionally, Racat Group chief David Haslingden’s management style gives the remaining staff the impression that he “not understand digital media at all”.
A joint statement by Racat Group and Piers Grove reads: “Junkee was purchased by Scout Publishing, a joint venture between Piers Grove and RACAT Group. Both Mr Grove and RACAT financed the purchase and operations, in the form of loans convertible into equity.”
“The $1.2m was paid by Mr Grove as such a convertible loan. Mr Grove has now offered to sell his interests in Scout to RACAT. The outcome has been mutually agreed by both parties who are confident of completing this in the next month.”
Racat Group launched Scout Publishing in April 2022, the publishing arm which houses Junkee Media’s Junkee, Punkee and AWOL alongside Australian Geographic and its sub-brands (AG Adventure, AG Explorers and AG Travel).
This article was updated with a change of headline, and to reflect that Grove’s absence in the Junkee office was due to medical leave.
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Darcy Song was a reporter at Mumbrella, covering media owners, adtech and social platforms. She left in October 2023.
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