ASX-listed music and media company Vinyl Group is broadening its publishing portfolio yet again, acquiring the city guides site Concrete Playground in a deal worth $5 million.
Vinyl (ASX: VNL) has signed binding Heads of Agreement to acquire the 15-year-old digital lifestyle brand for $3.5 million in cash and $1.5 million in Vinyl shares, with the deal due to go through by the end of February 2025.
Concrete Playground was founded in 2009 by CEO Rich Fogarty, and publishes sites in Sydney, Melbourne, Brisbane, Auckland, and Wellington, covering events, experiences, and entertainment trends. Fogarty will depart the business once the sale goes through.
Vinyl Group CEO, Josh Simons said Concrete Playground’s unaudited revenues over the past 12 months exceeded $4 million, which would contribute a pro-forma EBITDA of approximately $1.5 million at completion.
“They’ve built a trusted platform that audiences genuinely love, and their approach to storytelling will be a natural fit with our broader media strategy,” he said.
“Operationally, this acquisition will be significant for Vinyl Group — it would not only elevate our capabilities but also fast-track our path to sustained profitability, allowing us to deliver even greater value to our shareholders and partners.”
The brand will sit within Vinyl Group’s media division, and is expected to deliver operational efficiencies and bring the company to positive cash flow by six months.
Fogarty said he’s proud of what the business has achieved to exit.
“This milestone reflects the talent, creativity and dedication of our team, along with the trust of our readers and partners,” he said.
“As the business transitions to new ownership under Vinyl Group, I’m confident their vision and resources will elevate Concrete Playground to new heights, inspiring even more people to discover the very best their cities have to offer.”
Completion is dependent on certain conditions and Due Diligence as well as shareholder, ASX and/or ASIC consents and is expected to take place no later than 28 February, 2025.
WiseTech Global’s billionaire founder Richard White owns nearly 38% of Vinyl through his investment fund RealWise Holdings, having upped his stake in October via a deal involving another one of his investments, the music licensing startup Songtradr.
Vinly owns blockchain music startup Serenade, music credits database Jaxsta, Web3 collectibles platform Serenade, the Tinder-style musician social network Vampr, and The Brag Media, which publishes Rolling Stone, Variety and other titles in Australia.
White invested $11 million in Vinyl last year when the company acquired Brag Media and has invested repeatedly in raises for Songtradr, founded by expat Australian songwriter, producer and entrepreneur Paul Wiltshire.
In September Vinyl also acquired trade publication Mediaweek. Last month its former owner, editor in chief, James Manning, departed the business suddenly after nearly 25, with Unmade reporting that he received an email Vinyl chief operating officer Joel King telling him editorial services were no longer required, effective immediately, told staff in the office “I’ve been sacked”, packed up and left. Vinyl denied he was sacked. He had been on a monthly contract following the acquisition.
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