Penske Media has invested $100 million in Vox Media, becoming the company’s largest shareholder, and providing Vox with much-needed operating capital.
Key Details
- Penske Media Corp is now the primary shareholder of Vox Media, which also includes New York Magazine, Eater, and The Verge.
- The significant investment will help Vox Media remain independent while also helping boost marketing.
- Although Penske is the largest shareholder, the two companies will “continue to operate separately” with “editorial and business independence,” says Vox Media CEO Jim Bankoff.
Why it’s news
Penske Media recently announced its large $100 million investment in Vox Media, giving Penske a 20% stake in the company.
The large investment will help Vox stay independent while still marketing after the company had previously discussed other strategic options, including a sale of all or part of its business and laying off around 7% of its workers.
Penske Media is the home of many entertainment brands, including Variety, Rolling Stone, The Hollywood Reporter, and Billboard. The company has also begun investing in events such as SXSW, and the Life Is Beautiful festival.
The new investment from Penske values Vox at around $500 million.
Notable Quote
“I have long admired Vox Media’s world-class editorial teams and brands,” says Penske. “We deeply respect the track record of Vox Media CEO Jim Bankoff and the senior leadership team at Vox, and the company’s remarkable growth over the last decade. The Penske Media and Vox Media alliance will further cement both companies as leaders in modern media and take advantage of new opportunities at scale. Our two companies share a similar history of organic and acquisitive growth over time, making it sense to invest for the future.”
Bankoff says that the company couldn’t ask for a better partner to invest in the company’s future and that the investment will allow Vox to continue scaling its existing brands and operations.
