As another indicator of the ever-changing media arena, Discovery Communications – once known as basically a cable programmer with the likes of the Discovery Channel, TLC and Animal Planet − will make a minority investment of $100 million and enter into a strategic partnership with Group Nine Media. That’s a new media holding company made up of companies pretty big on delivering content via social media: Thrillist Media Group, NowThis Media, The Dodo and Discovery’s digital network Seeker (along with its production studio SourceFed Studios).
Axel Springer will maintain its investment as the second largest shareholder. Ben Lerer, CEO of Thrillist, will become CEO of Group Nine Media. The merging of these Millennial-focused brands will create one of the largest digital-first media companies, according to a statement.
“Today marks the start of a strong new company with tremendous brands, reach and scale,” David Zaslav, president and CEO at Discovery Communications says. “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 that advertisers want to reach.”
Lerer points out that the scenario allows the brands “the opportunity to remain independent and build our own future, while at the same time, having the support of one of the best media and entertainment companies in the world.”
The partnership between Discovery and Group Nine Media will include a commercial agreement aimed at reaching advertisers looking to reach an audience via multiple platforms including linear, digital, social and live events. Discovery will have an option to buy a controlling stake in Group Nine Media in the future.
The Dodo is said to have more than 700 million monthly social video views, and NowThis is reportedly the number one video news publisher on Facebook. Seeker has more than 23 million YouTube subscribers across its channels, and Thrillist’s audience has doubled to nearly 20 million monthly uniques on O&O properties, according to a press release. More than 60 percent of the Group Nine Media audience will be made up of users ages 18-34.
