Penske Media Makes Strategic Investment in Vox

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The deal makes Penske Media the largest shareholder in Vox, which owns New York Magazine, The Cut and Vulture among other digital sites.

“We deeply respect the track record of both [Vox CEO] Jim Bankoff and the senior leadership team at Vox, and the company’s remarkable growth over the last decade. The Penske Media and Vox Media alliance will further cement both companies as leaders in modern media and take advantage of new opportunities at scale. Our two companies share a similar history of organic and acquisitive growth over time, and it made sense to invest for the future.

Penske Media owns WWD, Variety, Billboard, The Hollywood Reporter, Rolling Stone, Artforum and a slew of other trade and consumer publications. The Vox deal is the latest expansion for the company, which last month deepened its strategic alliance with Todd Boehly’s Eldridge Industries in acquiring Dick Clark Productions.

In his own statement, Bankoff added that the investment “will allow Vox Media to continue scaling its existing brands and operations, while providing resources for future acquisitions, and is another step forward in the ongoing ascent of Vox Media.” Vox Media has been looking for ways to raise capital as economic headwinds continue to bear down on the media sector. Bankoff revealed in January that the company would cut 7 percent of its staff.

“Unfortunately, in this economic climate, we’re not able to sustain projects and areas of the business that have not performed as anticipated, are less core to where we see the biggest opportunities in the coming years, or where we don’t have enough rationale to support ongoing investment in what could be a prolonged downturn,” Bankoff wrote in an email to staff on Jan. 20.

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