Getting in on the joke, Univision buys stake in The Onion
Terms of the transaction were not disclosed.
Univision announced it would work with Onion to explore new content opportunities, including short- and long-form formats for each Onion brand across digital and linear mediums.
The Onion will operate independently to maintain its editorial voice, while Univision will leverage its distribution and resources to expand the site’s exposure. Univision wants to appeal to more millennials by using humor, and The Onion could seemingly benefit from the stability of a parent company after over a decade significant changes involving management, location and digital innovation. On top of its flagship comedic news source The Onion, Onion Inc.’s brands include pop culture site The A.V. Club, clickbait parody site ClickHole, satirical celebrity gossip site StarWipe and its digital video network Onion Studios.
The Onion will open up new audiences for Univision to reach in its push for a diverse portfolio; just a year ago it snapped up African-American news outlet The Root and took a slice of news and lifestyle network Fusion.
And with the political season upon us-Hispanic voters are among the most sought-after demographic by candidates-The Onion has been hitting both sides of the aisle hard with articles like Rubio Refutes Claim He Soft On Immigration By Dragging Undocumented Worker He Knocked Out Cold Onto Stage and Out-Of-Control Hand Gesture Sends Bernie Sanders Tumbling Off Stage. Founded in Madison, Wisconsin, home to the University of Wisconsin, The Onion in 2013 shuttered its print edition, while also launching Onion Labs, an advertising agency. An investment in The Onion might help Univision gain access to more web traffic and alliances that would promote its other digital outlets.
In late 2014, The Onion hired investment bank GCA Savvian to seek investment capital for the business, which was purchased in 2001 by a group led by money manager David Schafer. “As an independent media company, we’ve always been forced to run a tight financial ship, which has made us smart and lean, but not always ready to invest in the great new ideas that we come up with”.