“They sold Lifehacker, made a good return and are looking to get out,” according to a person familiar with the matter.
A roll-up gone wrong
G/O Media is a relatively small acquisition by Great Hill standards, which often invests between $50 million to $75 million in companies whose businesses grow to around $200 million, according to a source.
The private equity firm initially hoped to scoop up the Gawker and Univision assets for cheap, invest in the brands and sell them for a profit, sources said. The strategy, a linchpin of the private equity playbook, typically occurs over a time horizon of three to five years, placing G/O Media near the end of that timeframe.
Instead, the media company has endured a ceaseless stream of internal turmoil. Culture clashes, for example, have roiled within the company around its return-to-office policy, as G/O Media operates offices in Chicago, Los Angeles, and New York.
This year, head of video Garth Bardsley and AV Club editor-in-chief Scott Robson have left the company, departures that have not been previously reported.
Persistent criticisms of CEO Jim Spanfeller, who has led the company since its inception, have also led to high rates of turnover. In 2023 alone, five editors-in-chief, as well as editorial director Merril Brown, left the company.
Unions are key variables
As G/O Media works to sell The Onion, the union contract protecting the publisher remains a key variable. The contract expires at the end of this month, according to two sources.
When G/O Media initially moved to sell Jezebel, its union contract complicated the effort, as potential suitors would have to honor it, according to a source. Only after G/O Media shuttered Jezebel, in November, was the feminist publisher able to find a buyer.
Literally Media, which has amassed a portfolio of comedy brands and recently acquired Mel Magazine, has been floated as a potential home for the brand, according to two people familiar with the matter. Literally Media did not respond to a request for comment.
“I would say there is a bit more reasonableness about value lately,” said one person familiar with the sales efforts. “You can buy anything.”
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