Digital media companies Group Nine Media and Refinery29 are said to be in talks to merge

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Both companies are seeking to diversify away from advertising, which has been harder to come by as most of the digital ad dollars are going to Google and Facebook.

Group Nine Media and Refinery29 are in talks to merge, say three people familiar with the situation.

Millennial digital media companies Group Nine and Refinery29 are in talks to merge, according to three people familiar with the situation.between venture-funded digital media outlets over the past few months, as several of them have experienced slowing growth with most of the digital ad pie going to Google and Facebook. Earlier this year, the heads of Group Nine and Refinery said they see themselves as acquirers.

Group Nine Media is the product of a rollup of NowThis, The Dodo, Thrillist, and Seeker. It formed in 2016 when Discovery Communications put $100 million into the company, and it led another round of $40 million in 2017. It's valued at $500 million, based on Discovery. Discovery has an option to buy the remaining stake in the company but hasn't exercised it. Thrillist and The Dodo unionized in 2017 and 2018, respectively. The company has over 600 employees.

He added that he's looking at acquiring companies in areas like events and direct-to-consumer businesses."There's significant opportunity for us to be a consolidator. There's interesting businesses to roll up. I want the business to be relevant and meaningful 10 years from now. And one way is to acquire but if there's an amazing company that would allow us to accelerate our vision, of course that's something we will consider.

 

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