NBCUniversal Buys $200 Million Stake in Vox Media

Comcast, which already owned roughly 14% of Vox…

Both deals continue a media sea change, where big media lean on digital powerhouses to tap into younger audiences who aren’t tuning into older formats like the evening news or Sunday shows.

Steve Burke, chief executive officer of NBCUniversal, stated: “Vox Media has strong leadership, top editorial talent and a unique technology platform”. Later, in April, it announced a deal with DigitasLBi aimed at creating and distributing branded content. It also unveiled a packed production roster featuring 20 original digital series, including include Vox Pop (from Vox.com), MKBHD Explains (from The Verge); and Origins (SB Nation), among others.

A+E Networks, a joint venture of Walt Disney Co. and Hearst Corp., paid $250 million for a 10 percent stake in news producer Vice Media Inc. last year, while Hearst alone invested in AwesomenessTV, an online network. In May, Vox announced the acquisition of Re/Code, another tech news site.

Vox will use the cash to fuel its growth and said it will collaborate with NBC “in many areas including video programming, brand advertising, cross-promotion, and platform technology to grow existing properties and launch new franchises”.

“NBCUniversal’s valuable family of properties align especially well with Vox Media’s authoritative, voice-driven brands which span sports, tech, news, fashion, food, and more”, says Jim Bankoff, CEO of Vox Media in a statement. Vox has also placed a premium on video, opening a Los Angeles-based entertainment division with an eye for developing short-form content for digital and traditional-length content for television distribution.

At the same time the report claims that NBCU is also taking $200 million stake in Buzzfeed but on a larger valuation of $1.5 billion.