- Group Nine Media recently announced that it raised $50 million in funding at a valuation of more than $600 million
Group Nine Media — one of the largest video publishers on mobile in the US and the parent company of NowThis, The Dodo, Thrillist, and Seeker — announced recently that it raised $50 million in a new round of funding from its lead investor Discovery, Inc. and strategic partner Axel Springer SE. According to The Wall Street Journal, this round of funding gives Group Nine Media a valuation of more than $600 million.
In 2016, Group Nine Media launched with $100 million in backing from Discovery at a valuation of $585 million. Including this round, Group Nine has raised $190 million total.
Group Nine’s brands have hit a number of milestones. For example, The Dodo became the #1 most engaged-with media brand on mobile in July 2019 (Tubular). NowThis became the #1 most-viewed news brand on digital in the US in July 2019 (Nielsen). And Thrillist has become a top three publisher for food, drink, and travel in the US on mobile in July 2019 (Nielsen).
Plus Group Nine now has production deals with over 20 different channels and platforms including Discovery, Netflix, and Comedy Central. And Group Nine has doubled revenue since its formation across areas including advertising, content distribution, and original content sales and licensing.
“In a rapidly changing industry, it’s easy to get distracted,” said Group Nine CEO Ben Lerer. “Our commitment to executing on our original vision has been a real advantage that has allowed us to build best-in-class brands supported by a mature multi-brand infrastructure. This strong vote of confidence from our investors underscores the fact that we have the right model for a next generation diversified media company and we’re incredibly well-positioned to lean in – even while others are stepping back. More to come.”
Lerer is known as the founder of Thrillist. And his sister Izzie Lerer is the chief creative officer and founder of The Dodo. And their father Kenneth Lerer had co-founded BuzzFeed and The Huffington Post. Kenneth Lerer is on the board of Group Nine Media and invested in the company through Lerer Hippeau Ventures.
“Group Nine is the standout in the evolving mobile ecosystem,” added David Zaslav, the President and CEO of Discovery, Inc. “Under the leadership of a fantastic executive team, they have category-defining brands that connect with young audiences through the best short, mid and long-form storytelling on mobile. Group Nine is a great fit with our strategy to aggregate and delight global passion audiences everywhere they consume video. We are proud to deepen our relationship with Group Nine through our additional investment.”
Discovery, Inc. and Axel Springer SE will retain a minority stake in Group Nine with Discovery as the lead investor. And the new funds will be used for continued IP investments across Group Nine brands and to fuel growth of its newly-launched commerce division.
“We’ve been initial investors in Thrillist and NowThis since the beginning and have been side-by-side investors with Lerer Hippeau for years. Ben and the Group Nine team’s vision for what it takes to create a real digital winner has been steadfast and its been backed-up by truly impressive growth. We’re firm believers in strong talent, powerful brands and premium content so we’re proud to continue to partner with Group Nine, a company that shares these priorities, as they continue to execute and outpace the market,” explained Jan Bayer, the President News Media International at Axel Springer SE.
This round of funding will also be used for potential strategic acquisitions. And in addition to this round of investment, Discovery, Axel Springer SE, and Lerer Hippeau invested $40 million in a follow-on round in Group Nine in November 2017.
Group Nine’s brand extensions also includes licensing, merchandise, and commerce. And the company hosts multiple events like “Hotel Thrillist” and The Dodo’s new “Best Dog Day Ever.”
