SpinMedia Group has acquired men’s lifestyle site Death and Taxes, the latest effort by the digital media company to turn its fortunes around. Financial details of the cash and stock deal were not disclosed.
Death and Taxes joins Spin, Vibe and Celebuzz as part of SpinMedia’s entertainment, music and lifestyle portfolio. SpinMedia also announced new partnerships with Starpulse, Wantickets and Jambase.
“We’re structurally and financially a new company, and this is the first of what we think will be multiple expansions,” Chief Executive Dale Strang said. “We’re choosing them carefully, but we’re excited about it.”
SpinMedia, formerly known as Buzzmedia, has gone through its share of troubles in recent years, responding to mounting debt with rounds of layoffs that included the removal of then-editorial director A.J. Daulerio late last year.
The company initiated liquidation proceedings in February to avoid filing for bankruptcy. It settled a $12 million debt to Silicon Valley Bank and erased $125 million in equity that venture firms had invested. As part of the process, the principals of SpinMedia LLC acquired the business and, with $10 million in backing from existing investors Focus Ventures, MC Partners and Anthem Ventures and newcomer TDF Ventures, rebranded as SpinMedia Group.
Redpoint Ventures, which invested in the digital publishing company in 2013, did not participate in the latest round.
Strang sounded confident in SpinMedia’s new direction, pointing out that some teams, particularly in sales and marketing, were fully rebuilt. Of the company’s 150 employees, more than half work out of its Hollywood headquarters.
SpinMedia is restructuring to scale profitably, said Strang. Revenue is on the rise, and the company is projecting continued growth into the third quarter.
For reprint and licensing requests for this article, CLICK HERE.