digital media

Great Hill Forms Digital Media Platform

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G/O Media, a newly formed platform of Great Hill Partners, has acquired the Gizmodo Media Group and The Onion from Univision Communications.

G/O Media reaches more than a third of all Americans online each month, attracting approximately 100 million unique visitors. The company’s brands target young, diverse influencers with content that focuses on technology (Gizmodo), car culture (Jalopnik), modern women’s interests (Jezebel), sports (Deadspin), life tips and hacks (Lifehacker), gaming (Kotaku), African American news and culture (The Root), and The Onion, which includes The A.V. Club and ClickHole.

G/O Media is led by digital content industry veteran Jim Spanfeller, who is also an investor in the company. In 2011, Mr. Spanfeller formed Spanfeller Media Group which produced TheDailyMeal.com and TheActiveTimes.com. These properties were both sold to Tribune Publishing in December 2016. From 2001 to 2009 Mr. Spanfeller was the chief executive of Forbes.com. Earlier in his career, he was the president of Ziff Davis’ consumer magazine group as well as the publisher of Inc. Magazine.

“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,” said Mr. Spanfeller. “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.”

Great Hill Partners has experience across the media and digital media sectors. Past investments include Educaedu (2010 – active), Momondo Group (2014 – 2017), Legacy.com (2012 – 2017), Recruiting.com (2006 – 2016), All Web Leads (2011 – 2015), Ziff Davis (2010 – 2012), Palm Beach Broadcasting (2002 – 2011), BuscaPé.com (2005 – 2009), Action Media (2004 – 2006), IGN (2003 – 2005), and Dame Broadcasting (2000 – 2005).

“From our experience across the digital media landscape, we know it is not every day that an attractive suite of digital media assets becomes available with strong brand recognition among consumers and advertisers, and a set of engaged, vertical audiences which together are larger than Vox, BuzzFeed or Vice,” said Chris Gaffney, a managing partner at Great Hill. “We are excited by growth and see a great opportunity to further scale a high-quality content producer led by an experienced digital media executive like Jim.”

Great Hill typically invests from $25 million to $200 million in companies that are active in the business-to-business and business-to-consumer industries including software, financial and healthcare technology, digital media, e-commerce, and internet infrastructure. In February 2017, Great Hill held a first and final closing of Great Hill Equity Partners VI LP, at the hard cap of $1.5 billion. The firm was founded in 1998 and is based in Boston (www.greathillpartners.com).

© 2019 Private Equity Professional | April 15, 2019

The Carlyle Group Acquires Getty Images

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The Carlyle Group and the management of Getty Images have formed a partnership to acquire Getty Images, a creator and distributor of still imagery, video and multimedia products, from Hellman & Friedman for $3.3 billion.

Carlyle Partners V, a $13.7 billion U.S. buyout fund, will provide equity financing for the investment. J.P. Morgan, Barclays, Credit Suisse, Goldman Sachs and RBC Capital Markets have provided committed debt financing for the transaction.

Getty Images is a creator and distributor of still imagery, video and multimedia products, as well as a provider of other forms of premium digital content, including music. Getty Images serves business customers in more than 100 countries and is the first place creative and media professionals turn to discover, purchase and manage images and other digital content. The company has offices in Los Angeles, Seattle, Chicago and New York (www.gettyimages.com)

Carlyle will acquire a controlling stake in Getty Images, while Getty Images Co-Founder and Chairman Mark Getty and the Getty family will roll substantially all of their ownership interests into the transaction. Getty Images management, including Co-Founder and Chief Executive Officer Jonathan Klein, will also invest significant equity in the company.

“In seventeen years, we have built a business that has revolutionized the industry, with innovation at its core. I am confident that the partnership between Getty Images and The Carlyle Group will see the company’s success continue,” said Mr. Getty.

The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. The firm is based in Washington, DC (www.carlyle.com).

“Getty Images is the premier, digital global marketplace for commercial visual content. We look forward to partnering with Mark Getty, Jonathan Klein and the talented Getty Images management team. We will harness Carlyle’s financial resources and global network to help take Getty Images to the next stage of product innovation and global growth,” said Eliot Merrill, Managing Director of The Carlyle Group.

Hellman & Friedman invests from $200 million to $750 million in companies across a range of industries including energy & industrials, software, business & marketing services, internet & digital media, financial services, insurance, media, and healthcare. Founded in 1984, the firm has raised and managed over $25 billion of committed capital and invested in over 60 companies. The firm is currently investing its sixth fund, with $8.4 billion of capital commitments. Hellman & Friedman is based in San Francisco, CA with additional offices in London, UK and New York, NY (www.hf.com).

“We acquired Getty Images in 2008 because we believed in its strategic direction, growth potential and ability to build on its leading position as one of the world’s premier media franchises. Our partnership exceeded our expectations, and has resulted in an outstanding investment for Hellman & Friedman. We’re confident the business is well positioned for future growth and success with The Carlyle Group,” said Andy Ballard, Managing Director, Hellman & Friedman.