“It’s existed for a number of years and they don’t have much to show for it, but I think that’s changing,” the expert said. “Within the travel vertical, in the homewares vertical, they could copy/paste everything they’ve done well with Tasty into those spaces.” BuzzFeed Studios was also highlighted as ripe for growth. We were also alerted to BuzzFeed’s “sleeping giant” brands: Nifty, a DIY homeware brand, and Bring Me!, a travel brand. However, they were unsure of whether Tasty can grow “at the rates we’ve seen in the past, which have been astronomic”. It is “such a powerful marketing machine for anything in CPG that there is not a single brand or category on a grocery store shelf that would not benefit from partnering with Tasty in some capacity”, the specialist said. Tasty, which publishes food videos and recipes, is BuzzFeed’s biggest IP opportunity, we heard. The company, which recently went public via SPAC, is seeking to diversify and invest in the “major revenue areas” of advertising and commerce, and ultimately make more acquisitions to build a larger audience and compete against the tech behemoths, the former BuzzFeed executive said. “I would say it’s going to continue to be a big challenge, and it’s something that I think only really gets solved by IP.”ĭelving into the competitive landscape, one expert’s view is that BuzzFeed is in a “two-horse race” against Vox Media. “I think that opens the door even more for publishers.” However, a former VP at Vice Media Group pointed out that these players are also competing against myriad other market participants. “If Facebook’s earnings have highlighted anything, it’s that the impact of Apple’s privacy features have had a real depression on their ad opportunities,” the former manager at Vox Media said. While there has been significant erosion due to the rise of these tech giants, a former divisional leader at BuzzFeed predicts a “mild swing back in the other direction” if industry players can present compelling and creative propositions to advertisers. US digital advertising hit the USD 200bn mark in 2021 and is set to reach approximately USD 300bn in the next 2-3 years, presenting significant revenue opportunities for digital media players.Įven with the “trifecta” of Facebook, Google and Amazon expected to soon own USD 0.85 of every digital ad dollar, “there’s a tremendous opportunity for premium publishers, Vox Media and some of their peers, to build very meaningful businesses”, a former manager at Vox Media told us. A busy dance floor.As we heard in one Interview, although the COVID-19 pandemic effectively pushed advertising “off a cliff” in Q1 and Q2 2020, it “whiplashed back to historic levels later that year”. One of the most highly-anticipated media deals - the Athletic’s planned merger with Axios - has reportedly hit the skids with the Athletic now turning to the New York Times as a merger partner. The regulator cast doubt on the overly optimistic projections of many startups merging with SPACs and suggested their warrants should be considered liabilities. After an explosive 109 new SPAC deals in March, there were only 10 in April. SPAC deals, all rage earlier this year, have come to a crashing standstill.But, as much as trendy editorial voices have positioned them as online content leaders, their business maneuverings have set them behind the curve: Buzzy digital media mainstays Vox, Bustle, and BuzzFeed have all been plotting blank-check mergers with SPACs, which would allow them to bypass the traditional IPO process. On the plus side, analysts say the merger would allow the company to escape a painful legacy provision from a deal stuck with TPG in 2017 - the PE firm is entitled to performance-based payments expected to cost Vice between $400 million between 20.Īs for the SPAC strategy, Vice isn’t alone.Last year revenue fell to just $580 million, down from $604 million. Founder Shane Smith predicted that Vice’s revenue would reach $1 billion by 2015.It would make a significant milestone in what has been a troubled story: Under the proposed transaction existing Vice shareholders (including Disney, A&E Networks, TPG, and founder Shane Smith) would control roughly 75% of the combined company. Vice, which bills itself as the “definitive guide to enlightening information,” is in talks with 7GC & Co Holdings. SEC Smacks SPACs, Digital Media Feels the Pain A big number, yes, but skimpy relative to its $5.7 billion valuation in 2017. Vice Media - the high-flying, millennial-focused digital media company - is planning to go public via a blank-check merger at a $3 billion valuation. Investors are hoping that what’s vice today may be virtue, tomorrow.
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