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Discovery invests $100m in digital group

Discovery Communications in the US has invested US$100m for a minority stake in new digital-first firm Group Nine Media.

David Zaslav

David Zaslav

The holding company will bring together Thrillist Media, in which Germany’s Axel Springer owns a minority stake, and Discovery’s digital network Seeker. The group also includes NowThis Media, The Dodo and Seeker’s production studio SourceFed Studios.

Ben Lerer, CEO of Thrillist, has been named CEO of Group Nine, in which Discovery will have an option to buy a controlling stake in the future.

“Today marks the start of a strong new company with tremendous brands, reach and scale,” said David Zaslav, president and CEO of Discovery Communications.

“The merger of these assets will bring together best-in-class management, led by Ben and his team, expertise in data analytics technology and global reach to create one of the world’s largest digital-first content companies, attracting young, passionate enthusiasts who advertisers want to reach.”

The partnership will also include a commercial agreement that enables advertisers to reach their audience via 360 opportunities across multiple platforms including linear, digital, social and live events.

It also expands Discovery’s push into the digital network space targeting millennials, which began with the 2012 purchase of digital network Revision3 and the subsequent acquisition in 2013 of Philip DeFranco’s portfolio of online video channels and ventures, DeFranco Creative, now renamed Seeker and SourceFed Studios.

Discovery also led rounds of funding in The Dodo in 2014 and 2015.

  

 

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