Univision sells Gizmodo Media Group
Parent company of Kotaku and other former Gawker sites deals portfolio to private equity firm Great Hill Partners
Kotaku has new ownership. Private equity firm Great Hill Partners today announced that it has acquired the Gizmodo Media Group from Univision Communications in an all equity transaction, details of which were not disclosed.
The deal will see the Gizmodo Media Group -- including Gizmodo, Kotaku, Deadspin, Jezebel, and others -- and Univision's satirical humor site The Onion brought together as a new company named G/O Media, led by James Spanfeller, who has previously held senior positions with Ziff Davis, Forbes.com, Yahoo Internet Life, and Inc. Magazine. Spanfeller is also a significant investor in G/O Media.
"This opportunity comes at a time when the entire digital media category is beginning to be recognized again for its unique ability to meet the diverse content and delivery needs of consumers and advertisers," Spanfeller said. "As the largest player in our space, G/O Media is in an ideal position to capitalize on this dynamic, and I am excited to collaborate with a great team that boasts an incredible track record to further expand our reach, add value to our advertisers and enrich our visitors' lives. G/O Media is already the leader among digital media companies speaking to the 10-to-34 year-old market, and we are confident and excited to see that lead expand."
Great Hill Partners has some experience investing in gaming media. It owned a piece of IGN from 2003 to 2005. It also invested in Ziff Davis from 2010 to 2012, but that was after the tech media group had shuttered its gaming site 1Up.com and cancelled the long-running magazine Electronic Gaming Monthly.
According to the Writers Guild of America East, which represents more than 200 employees of Gizmodo Media Group and The Onion, G/O Media will recognize the contracts those groups' unions recently reached with Univision. The Onion Union struck its deal in December, while the Gizmodo Media Group Union ratified its contract in March.
The Gizmodo Media Group sites were part of Gawker Media until that company's litigation-induced bankruptcy. The sites were acquired by Univision in August of 2016 for $135 million.