Vinyl Group Completes $10.5M Deal That Puts Its Audience Reach Level With Nine
Vinyl Group completes $10.5 million Val Morgan Digital acquisition
Vinyl Group has completed its acquisition of Val Morgan Digital, acquiring digital publishing licences and partnerships from The HOYTS Group subsidiary for $10.5 million. The transaction comprises $7 million in cash and $3.5 million in escrowed shares, with Val Morgan Digital contributing $10.7 million in CY25 revenue — representing an approximate 73% increase to Vinyl Media’s existing revenue base.
The deal transforms Vinyl Group’s competitive positioning in Australian digital media, with the company now operating at audience scale comparable to major media organisations including Nine and News Corp Australia. Val Morgan Digital delivered an expected pro forma annualised EBITDA contribution of $2.5 million post-integration, immediately adding profitable revenue to the consolidated entity.
The acquisition eliminates a direct competitor whilst consolidating premium brand licences under Vinyl Media’s publishing division. Val Morgan Digital’s partnerships include ANZ licences with BuzzFeed Inc., Fandom, LADbible Group, and Vox Media, all of which have been novated to Vinyl Group as part of completion.
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What is Val Morgan Digital and why does this deal matter?
Val Morgan Digital operated as a digital publishing business holding licences for major international media brands across Australia and New Zealand. The company was previously a direct competitor to Vinyl Media, Vinyl Group’s publishing arm.
The key brand partnerships and licences acquired through this transaction include:
- BuzzFeed Inc. — digital content and social media publisher
- Fandom — entertainment and gaming content platform
- LADbible Group — social-first news and entertainment publisher
- Vox Media — digital media network covering technology, culture, and lifestyle content
For investors, this acquisition represents a consolidation play that removes competitive pressure whilst simultaneously adding Val Morgan Digital’s audience reach and revenue to Vinyl Group’s operations. Acquiring a competitor eliminates market rivalry, captures its revenue stream, and provides immediate scale benefits in a single transaction.
The assets acquired were previously owned by Val Morgan and Co. (Aust.) Pty Ltd, a subsidiary of The HOYTS Group, which operates cinema and outdoor advertising networks across Australia.
Audience reach now rivals Australia’s largest media companies
The completed acquisition positions Vinyl Media at digital audience scale comparable to major Australian media organisations. According to Ipsos iris data from January 2026, the consolidated entity’s combined internet audience reach is expected to reach approximately 47% of Australians online in the Entertainment category and 51% in the News category.
This leap in audience scale places Vinyl Group alongside established media companies including Nine and News Corp Australia in terms of digital reach across key content categories.
| Content Category | Audience Reach (% of Australians Online) |
|---|---|
| Entertainment | 47% |
| News | 51% |
Audience scale is the fundamental currency of digital advertising. Larger reach enables media companies to attract major advertising spend and compete for premium campaigns that require significant audience coverage. This acquisition fundamentally changes Vinyl Group’s ability to pursue larger advertising contracts and positions the company to monetise its expanded audience base more effectively.
The audience figures represent a de-duplicated online audience reach across PC/Laptop, Smartphone and Tablet for Australians aged 14+, combining Vinyl Media and Val Morgan Digital entities into a single Brand Group audience measurement.
Transaction structure and funding
The $10.5 million total consideration was structured as $7 million in cash and $3.5 million in escrowed shares. The equity component resulted in the issuance of 41,816,010 ordinary shares at $0.0837 per share, calculated using the fifteen-day Volume Weighted Average Price (VWAP) for the period ending the day prior to execution. These shares are subject to a 24-month escrow from the date of issue.
Vinyl Group funded the transaction through a $10 million loan facility provided by Non-Executive Chairman Robert Kenneth Gaunt, who is also a top 10 shareholder. The facility terms are structured as follows:
- $10 million total facility amount
- Five-year term
- RBA +5% interest rate per annum
- $7 million allocated to the Val Morgan Digital acquisition
- $3 million allocated to general working capital
The funding structure demonstrates insider confidence, with a major shareholder providing acquisition financing on commercial terms. The vendor share escrow aligns the seller’s interests with Vinyl Group’s post-acquisition performance over the next two years, creating incentive for ongoing cooperation during the integration period.
Strategic partnership with The HOYTS Group
Alongside completion of the asset sale, Vinyl Group has entered into a cooperation and services agreement with The HOYTS Group covering outdoor and cinema advertising cross-sell capabilities. This partnership is intended to enhance Vinyl Media’s integrated offering for advertisers by creating multi-channel campaign opportunities that combine digital publishing with HOYTS’ cinema and outdoor advertising networks.
The strategic partnership extends the value of the transaction beyond asset acquisition, creating ongoing commercial synergies through access to complementary advertising inventory. For advertisers, this provides the ability to execute integrated campaigns across digital, cinema, and outdoor channels through a single media partner.
Board changes signal strategic alignment
The HOYTS Group CEO & President, Damian Keogh, has been appointed to the Board of Vinyl Group as a Non-Executive Director, effective immediately. Mr Keogh brings more than 25 years of senior media and commercial leadership experience to the Board and will support the Group’s continued growth, strategic partnerships, and execution of the integration process for Val Morgan Digital assets.
Linda Jenkinson has resigned as a Non-Executive Director of the Company, effective immediately. The Board acknowledged Ms Jenkinson’s contribution and service to Vinyl Group during a period of significant transformation and growth, including her role in supporting the Company’s strategic expansion across media and technology.
Damian Keogh, The HOYTS Group CEO & President
“This transaction brings together a powerful portfolio of premium cultural assets with significant national reach. I am excited to join the Board and work with Josh and the team as Vinyl Group enters its next phase of growth.”
The appointment of HOYTS’ CEO to Vinyl’s board provides ongoing strategic linkage between the two organisations. This board-level connection supports the integration process and creates a governance framework for the ongoing cooperation and services agreement between the companies. For investors, the appointment signals continued collaboration between Vinyl Group and The HOYTS Group beyond the completion of the asset sale.
CEO commentary on strategic positioning
CEO & Executive Director Josh Simons positioned the acquisition as a material enhancement to Vinyl Group’s scale and a defining step in building one of Australia’s most influential culture, technology, and media platforms.
Josh Simons, CEO & Executive Director
“The completion of the Val Morgan Digital acquisition materially enhances Vinyl Group’s scale and positions us to execute on our Adaptive Media strategy at scale. This is a defining step in building one of Australia’s most influential culture, technology and media platforms.”
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What comes next for Vinyl Group
The integration process will focus on capturing the expected annualised EBITDA contribution of $2.5 million post-integration whilst leveraging the strategic partnership with The HOYTS Group to create outdoor and cinema advertising opportunities for Vinyl Media clients.
Vinyl Media now operates a consolidated portfolio of premium brand licences across Australian and New Zealand markets, including:
- Owned properties: Concrete Playground, Mediaweek, Tone Deaf
- Licensed brands: Rolling Stone, Variety, Refinery29, POPSUGAR, BuzzFeed, Tasty, LADbible, SPORTbible
- Acquired assets: BuzzFeed Inc., Fandom, LADbible Group, and Vox Media partnerships from Val Morgan Digital
The company’s platforms division operates complementary business lines that support creators and consumers across music and entertainment. Vinyl.com operates as a leading e-commerce destination with more than 60,000 titles, Vampr functions as a social-professional network with 1.6 million creators across 190+ countries, and Serenade supports more than 200 global artists through physical and digital collectibles.
The acquisition positions Vinyl Group for both revenue growth and margin expansion through operating leverage. Investors should monitor integration execution updates and evidence of advertising revenue synergies as the company consolidates Val Morgan Digital’s operations into Vinyl Media over coming quarters. The $2.5 million annualised EBITDA contribution target provides a clear benchmark for assessing integration success.
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