AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Vinyl Group (VNL) acquires Concrete Playground for $5 million.
- Concrete Playground adds over $4 million in revenue.
- Strategic acquisition expected to boost profitability.
ASX-listed music and media company, Vinyl Group (ASX:VNL), is expanding its publishing portfolio by acquiring the city guides site, Concrete Playground, in a deal valued at $5 million. This strategic move involves a binding Heads of Agreement to purchase the 15-year-old digital lifestyle brand for $3.5 million in cash and $1.5 million in Vinyl shares, with completion expected by the end of February 2025.
Background of Concrete Playground
Founded in 2009 by CEO Rich Fogarty, Concrete Playground has become a well-regarded platform covering events, experiences, and entertainment trends across major cities like Sydney, Melbourne, Brisbane, Auckland, and Wellington. With unaudited revenues exceeding $4 million over the past 12 months, the platform is set to contribute a pro-forma EBITDA of approximately $1.5 million upon completion.
Strategic Fit and Operational Benefits
Josh Simons, CEO of Vinyl Group, praised Concrete Playground for building a trusted platform that resonates with audiences. "Their approach to storytelling aligns seamlessly with our broader media strategy," he remarked. This acquisition is expected to enhance Vinyl Group's capabilities and accelerate its path to sustained profitability, ultimately delivering greater value to shareholders and partners.
Concrete Playground will become part of Vinyl Group's media division, aiming to deliver operational efficiencies and achieve positive cash flow within six months. This acquisition underscores Vinyl Group's commitment to expanding its reach and enhancing its content offerings.
Leadership Transition
Rich Fogarty expressed pride in Concrete Playground's achievements and confidence in Vinyl Group's vision for the future. "This milestone reflects the talent, creativity, and dedication of our team, along with the trust of our readers and partners," he stated. With Fogarty set to depart post-sale, the transition marks a new chapter for Concrete Playground under Vinyl Group's stewardship.
Strategic Backing and Market Impact
Completion of the acquisition is contingent on certain conditions, including Due Diligence and obtaining necessary consents from shareholders, ASX, and/or ASIC, with a target date of no later than 28 February 2025. Vinyl Group's strong backing includes WiseTech Global's billionaire founder Richard White, who owns nearly 38% of Vinyl through his investment fund RealWise Holdings. White has increased his stake, further solidifying his support for Vinyl's growth strategies.
Diverse Portfolio and Growth Prospects
Vinyl Group's diverse portfolio includes blockchain music startup Serenade, music credits database Jaxsta, Web3 collectibles platform Serenade, the Tinder-style musician social network Vampr, and The Brag Media, which publishes Rolling Stone and Variety in Australia. This acquisition aligns with Vinyl's strategy to enhance its content and media footprint.
In addition to Concrete Playground, Vinyl Group recently acquired trade publication Mediaweek. These strategic acquisitions are designed to strengthen Vinyl's market position and drive revenue growth, positioning the company for a prosperous future.
