Discovery Communications has partnered with Group Nine Media, investing $100 million the new holding company.
The deal sees Discovery take a minority stake Group Nine, which consists of a multiple millennial-focused digital assets. It has also gained the option to buy a controlling stake in the future.
Ben Lerer, newly-appointed Group Nine CEO, said, “This is truly a ‘win-win’ scenario, allowing our brands the opportunity to remain independent and build our own future, while at the same time, having the support of one of the best media and entertainment companies in the world.
“Each of our brands has found great success independently, but with consolidation of digital content companies around the corner, there is extraordinary value in all existing under one multi-brand roof.”
Group Nine will now also house Discovery’s digital network Seeker, along with its production studio SourceFed Studios.
“Today marks the start of a strong new company with tremendous brands, reach and scale,” said David Zaslav, president and CEO, Discovery Communications.
“The merger of these assets will bring together best-in-class management, led by Ben and his team, expertise in data analytics technology and global reach to create one of the world’s largest digital-first content companies attracting young passionate enthusiasts that advertisers want to reach.”