Vinyl Group has agreed to acquire Val Morgan Digital, the digital media business of Val Morgan and Co. (Aust.) Pty Ltd, a subsidiary of The HOYTS Group, in a $10.5 million asset sale designed to significantly expand the reach of its publishing division, Vinyl Media.
As part of the transaction, HOYTS Group CEO and President Damian Keogh will join the board of Vinyl Group, while the deal also provides Vinyl access to Val Morgan’s cinema and out-of-home inventory through a broader commercial partnership.
The ASX-listed media and music technology company confirmed it has entered into a binding Asset Sale Agreement, with completion expected in approximately one month, subject to customary conditions precedent, including the novation of key licensing partnerships.
Val Morgan Digital’s assets include partnerships and ANZ licences with BuzzFeed Inc., Fandom, LADbible Group and Vox Media. The business previously operated as a direct competitor to Vinyl Media.
Source: Vinyl Media
Scale play for Vinyl Media
Vinyl said the acquisition would materially expand the scale of its publishing business and strengthen its national audience reach.
Following completion, Vinyl Media’s combined audience reach is expected to reach approximately 47% of Australians online in the Entertainment category and 51% in the News category, positioning Vinyl at a comparable digital audience scale to major Australian media organisations, including Nine and News Corp Australia.
Vinyl Group said the increased scale will support the expansion of its ‘Adaptive Media’ strategy, which integrates advertising across cultural media assets and distribution channels.
Under the terms of the agreement, Vinyl Group will acquire the assets of Val Morgan Digital for $10.5 million, comprising $7 million in cash and $3.5 million in Vinyl Group shares.
The shares will be issued based on the 15-day Volume Weighted Average Price (VWAP) ending the day prior to the agreement and will be subject to a 24-month escrow period.
The company said the cash component will be funded through a facility of up to $10 million provided by existing shareholders, with documentation currently being finalised.
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Revenue and earnings impact
For the 2025 calendar year, Val Morgan Digital generated unaudited revenue of $10.7 million.
Following completion and integration, the acquisition is expected to contribute approximately $2.5 million in annualised EBITDA to Vinyl Group on a pro forma basis.
Vinyl said the transaction would increase Vinyl Media revenue by approximately 73%.
Alongside the acquisition, Vinyl Group has entered into a cooperation and services agreement with Val Morgan covering cross-selling opportunities across outdoor and cinema advertising.
The partnership is intended to expand Vinyl Media’s integrated campaign offering for advertisers across multiple channels.
Vinyl Group CEO & Executive Director Josh Simons said: “The acquisition of Val Morgan Digital materially enhances Vinyl Group’s scale, and consolidates our position as one of the largest and fastest growing media conglomerates in Australia. I am excited to oversee our strategy as we usher in a new era of Adaptive Media at scale in Australia. This will enable advertisers meaningful brand connections in an integrated and immersive ecosystem, through a mix of our culture distribution channels.”
The HOYTS Group CEO & President Damian Keogh said: “This transaction recognises the strength of consolidation, bringing the assets of Val Morgan Digital into Vinyl Group. We have a large portfolio of premium cultural assets together with significant national reach, providing a unique and compelling value proposition for advertisers. I am excited to be joining the Board, working with Josh and his passionate team to contribute to Vinyl Group’s next phase of growth.”
Vinyl Group said it will update the market on completion in line with its continuous disclosure obligations.
Mediaweek is owned by Vinyl Group Media.
Main image: HOYTS Group CEO and President Damian Keogh, and Vinyl Group CEO & Executive Director Josh Simons