ZelnickMedia to acquire Alloy for $126.5 million
An investor group led by ZelnickMedia will acquire Alloy, Inc., a media and entertainment company, for approximately $126.5 million. The deal is expected to close in the fourth quarter.
ZelnickMedia, which is comprised of media executives and investors, was, in part, attracted to acquiring Alloy to target the 10-to-29-year-old segment.
"The Millennial marketplace presents a special opportunity for Alloy. Estimates have put the number of Millennials in the US at more than 75 million, accounting for 25% of the total population – virtually equivalent to the Baby Boomers,” said Jordan Turkewitz, partner at ZelnickMedia, via e-mail. “We see an opportunity to take advantage of Alloy's unique position as both content creator and distributor to the hard-to-reach Millennial generation.”
Geraldine Laybourne, widely credited for turning children's network Nickelodeon into a success, will serve as Alloy's chairman. Alloy's cofounders, Matt Diamond and Jim Johnson, will continue to run the company as CEO and COO, respectively, according to a statement from ZelnickMedia. The rest of Alloy's management team will remain in place as well, according to a statement.
Both Diamond and Johnson will exchange a portion of their Alloy shares for an equity interest in the acquirer.
New York-based Alloy is known for producing entertainment programs such as Gossip Girl and the Vampire Diaries.