Equity Investment Firm General Atlantic Invests $46.5 Million in Vox Media
Vox Media which is a publisher with a fast-growing portfolio of news brands and online lifestyle has announced that it has just closed a $46.5 million round of financing from a New York investment firm, General Atlantic. According to sources, the investment values the company at $380 million. The deal comes at a time when digital-media companies are suddenly of interest to venture-capital firms.
Head of General Atlantic’s Internet and technology team, Anton Levy said that his firm like other investors had typically avoided content creators such as Vox in favor of platforms with many capabilities like Facebook and Alibaba. However, lately, he said, the firm has had a change of heart.
He added that they think they are at an inflection point for the next five years; the customers going to have the next generation of media platforms emerge. There are parallels to cable in the ’80s. There is going to be a huge amount of value creation.
In the last 12 months, Vox Media has been adding publications to its portfolio, including, the news site, Vox.com, which was introduced in April by Ezra Klein. According to comScore, in October Vox.com grew to 10.9 million visitors.
Vox’s combined seven online publications, which include Eater (food), The Verge (technology) and SBNation (sports) had doubled their online traffic in 2014 to draw approximately 150 million unique visitors a month.
The chief executive of Vox Media, Jim Bankoff says that he will use the money to raise the profile of his brands and to improve the company’s custom-content abilities for advertisers.
Native advertising or custom content has become a major way for publishers to charge premium prices. To lead this expansion, the company announced that it had recruited Lindsay Nelson as the head of VoxCreative, its internal agency. Nelson was the founder of SlateCustom, the internal branded content creative agency of Slate magazine.
The Vox will also be investing heavily in video, looking to expand its audience through partnerships with popular YouTube personalities.