Men’s Journal to Anchor Vertical Group, Complementing Existing Sports, Lifestyle, and Finance Arena’s Accelerated Growth
The Arena Group Holdings, Inc. (NYSE American: AREN) (the “Company” or “The Arena Group”), a tech-powered media company home to more than 240 brands, including Sports Illustrated, TheStreet, Inc. (“TheStreet”), and Parade Media (“Parade”), today announced that it has entered into a definitive agreement to acquire the digital assets of Men’s Journal, Men’s Fitness, Surfer, Powder, Bike, SKATEboarding, Snowboarder and NewSchoolers from accelerate360. The collection of active lifestyle brands, which will provide the core components of The Arena Group’s fourth major vertical, has been a staple of those enjoying active and adventurous lives.
The Arena Group has driven transformative growth across its businesses over the past 24 months, growing to more than 103 million monthly users according to ComScore in October, to become the 33rd largest publisher in the U.S. This acquisition will enable the Company to add a fourth vertical, the Men’s Journal Lifestyle Media Group, to complement its Sports, Finance and Lifestyle arenas with plans to integrate and maximize the newly acquired brands with its proprietary growth model.
“For years, consumers have trusted Men’s Journal for exclusive lifestyle content and guidance on travel, gear, the outdoors, style, food & drink, and more. Additionally, the titles within the Adventure Network have long stood for excellence with passionate enthusiasts within the Ski, Surf, Biking, and Skateboarding communities. There are natural synergies between these brands and our existing audiences we can leverage and enhance through integration, distribution, and our playbook, driving incremental value, growth, and profitability. This strategic investment underscores our commitment to diversifying and devoting resources to opportunities where we see the most value across The Arena Group.”
– Ross Levinsohn, Chairman and CEO of The Arena Group
“The Arena Group will be a great home for these terrific brands and the teams that have made them so successful. This agreement not only provides an opportunity for these brands to thrive, but also allows us to further sharpen our focus and resources on the continued growth of our Celebrity and Women’s Lifestyle brands that have further been bolstered by the recent Bauer U.S. and Centennial Media acquisitions.”
– a360media President, Doug Olson
According to ComScore, The Arena Group’s sports vertical, Sports Illustrated Media Group, moved up to #3 in audience size among U.S. sports properties in October. Over the first nine months of 2022, The Arena Group has grown digital advertising revenue by 90%, overall revenue by 41% to $180 million, and improved its gross profit by almost $20 million, versus the same period a year ago.
Under the terms of the acquisition agreement, The Arena Group will pay an aggregate of $28.5 million, including $25 million in cash upfront and approximately $3.5 million in deferred payments to acquire these digital assets and assume certain liabilities. The acquisition is expected to be completed Thursday, December 15. For more information on The Arena Group, visit thearenagroup.net.