NBCUniversal (NBCU) has dropped large chunks of change into two digital media properties. According to Re/code, the media and entertainment conglomeration has confirmed its investment in Vox Media.
Back in July 2015, Re/code (which is owned by Vox Media) reported NBCUniversal was considering investments in BuzzFeed and Vox for as-of-yet unknown amounts. Now, NBCU has confirmed it’s putting $200 million into Vox, which places the pre-money valuation of that digital media company at around $850 million. Vox Media’s new total valuation is sitting at around $1 billion.
As for BuzzFeed, NBCU is also reportedly investing $200 million into the viral content and online video powerhouse. Should NBCU invest in BuzzFeed, the influx of cash from NBCU would make BuzzFeed worth about $1.5 billion, including previous investments in the digital media company by companies like Andreessen Horowitz (who dropped $50 million on BuzzFeed back in August 2014).
Peter Kafka at Re/code reports that Vox Media CEO Jim Bankoff said Vox and BuzzFeed will now also have a “commercial partnership.” “That means, among other things, that they will collaborate on digital advertising, will work together on video advertising and video programming, and that you will likely see Vox Media employees more frequently on NBCU-owned networks like CNBC,” Kafka writes, noting Re/code already has a news partnership with CNBC.
NBCU’s decision to invest in Vox Media and BuzzFeed makes sense considering the digital properties will help the media giant up its overall digital game and attract a younger crowd. On the BuzzFeed and Vox’s parts, the two media brands will be able to use the cash from NBCU to up their motion picture and video content goals, respectively.
Neither NBCU nor BuzzFeed have officially commented on the investment deal as of yet.
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