G/O Media has offered its sports activities web site Deadspin to Lineup Publishing, an promoting agency that operates monetization software program for media shops.
The monetary phrases of the sale weren’t disclosed. The present Deadspin workers—round 30 staff—might be laid off as a part of the deal, in line with an inside memo despatched by chief government Jim Spanfeller.
“Whereas the brand new homeowners plan to be reverential to Deadpin’s distinctive voice, they plan to take a unique content material method relating to the positioning’s general sports activities protection,” Spanfeller mentioned within the e-mail. “This sadly means that we are going to be parting methods with these impacted workers members, who had been notified earlier at present.”
The sale comes after ADWEEK reported in January that G/O Media was actively fielding presents to promote elements of its portfolio, supplied the presents meet sure industrial standards.
It offered the suggestions web site Lifehacker to Ziff Davis in March 2023 and the feminist property Jezebel to Paste Journal in November, and it has acquired presents for satirical model The Onion.
The sale of Deadspin represents its third divested property in 12 months.
Nonetheless, Spanfeller harassed within the memo that the corporate was not actively buying Deadspin.
“The rationale behind the choice to promote included quite a lot of necessary components that embody the client’s editorial plans for the model, robust competitors within the sports activities journalism sector and a valuation that mirrored a large premium from our unique buy worth for the positioning,” Spanfeller mentioned.
Controversy at Deadspin
An editorial controversy at Deadspin late final 12 months could have helped hasten its sale, in line with two individuals conversant in the matter.
The sports activities web site printed a narrative in November accusing a 9-year-old boy attending a Kansas Metropolis Chiefs soccer sport of sporting blackface, solely to find that the fan had painted his face pink and black. The household finally sued Deadspin for the story.
The incident pissed off the non-public fairness possession of G/O Media, Nice Hill Companions, in line with two individuals conversant in the matter.
G/O Media, which Nice Hill acquired in 2019 for $40 million, is a comparatively small acquisition by Nice Hill requirements, which regularly invests between $50 million and $75 million in corporations with companies that develop to round $200 million, in line with a supply.