In 2016, Univision bought all six Gawker Media sites for $135 million during a bankruptcy auction, and then they integrated them into the company’s Fusion Media Group (FMG). Univision now wants investors to buy a minority stake in that company for $200 million.
“FMG is an important and growing part of our portfolio and we are committed to positioning it for continued success,” said Rosemary Mercedes Univision’s EVP, Chief Communications Officer.
FMG’s Gizmodo Media Group consists of following brands: Gizmodo, Deadspin, TrackRecord, Lifehacker, Jezebel, Splinter, The Root, Kotaku, and Jalopnik. The Fusion Media Group comprises Univision.com with interests in the Onion, Clickhole, The A.V. Club, and Fusion TV. Univision wants to include El Rey Network and a production studio.
Univision announced that their core digital advertising revenue for the period was $34.4 million in their third quarter of 2017, down 0.3% from last year. In the first nine months of 2017, however, core digital ad sales were $95.6 million, up 2.9%.
The head of Fusion Media Group was Isaac Lee, who is now Univision Communications Chief Content Officer. FMG mentioned that they are quite excited about the acquisition, and with the performance of sites rebranded as Gizmodo Media Group. They announced that its combined digital web presence attracts an audience of more than 110 million unique visitors.
Buyers and funders are always seeking properties. We can see a current example in Mashable, a hit in the market for many months that went to publisher Ziff Davis for $50 million, a fraction of the $250 million valuation it received in 2016.