Scoop: CVC eyes Group Black’s bid for Bustle-owner BDG

Pictured: Travis Montaque. Picture credit score: Getty Pictures

CVC Capital Companions is trying to companion with Group Black on its bid to purchase BDG Media, in line with sources. Fellow non-public fairness large Blackstone has additionally eyed a job in Group Black’s pursuit of BDG, sources say.

Why it issues: The non-public fairness curiosity within the BDG course of provides critical weight to the acquisition effort and places one other highlight on the media firm after it deserted efforts to pursue a SPAC.

Particulars: CVC would offer Group Black with the fairness wanted to accumulate BDG, previously often known as Bustle Media Group, if Group Black finally decides to maneuver ahead with a suggestion, the sources mentioned.

  • Exact particulars of Blackstone’s potential function was not instantly clear, although one supply mentioned the talks are now not dwell.
  • Whereas Group Black and BDG have been in talks for months a couple of deal, sources informed Axios that Group Black remains to be weighing the worth of BDG Media’s enterprise in a toughening financial local weather.
  • Group Black is a media collective that is trying to get entrepreneurs and advert businesses to shift extra of their advert spending to Black-owned media retailers. Along with its pursuit of BDG, Group Black is trying to purchase extra digital media property — a transfer CVC would additionally search to companion on, sources say.

Of word: BDG Media depends closely on promoting throughout its portfolio of over a dozen media manufacturers.

  • The corporate was trying to go public through a SPAC final yr in a deal that will worth it at round $600 million, together with debt, however sources say commanding that valuation on this financial atmosphere can be difficult, given the broader advert market slowdown.
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Catch up fast: The Wall Road Journal reported in June that Group Black was taking a look at potential acquisitions within the digital media house, together with curiosity in shopping for a majority stake in BDG.

  • The story didn’t point out CVC or another companion.
  • Like every transaction, Group Black might determine again away and CVC might determine to not take part.
  • All firms and personal fairness corporations talked about on this article declined to remark.

The large image: Consolidation within the digital media house is rampant as extra startups look to return enterprise investments to buyers.

  • For firms like BDG, which explored a SPAC post-pandemic, non-public gross sales to an acquirer now seem to be a greater different.
  • The promoting market slowdown has prompted many digital media publishers to rethink their near-term monetary methods.

Editor’s word: The story has been up to date to replicate further reporting that confirmed Blackstone is now not pursuing a job within the potential transaction.