Alloy Media, the New York-based media and entertainment firm focused on millennial consumers, has been acquired for $126.5 million by an investor group led by ZelnickMedia.
Members of Alloy's senior management will now help take the Nasdaq-listed company private.
Alloy is best known for creating hit properties like Gossip Girl, The Sisterhood of the Traveling Pants, The Vampire Diaries and Pretty Little Liars.
As part of the transaction, Geraldine Laybourne, the former CEO of Nickelodeon, is joining the company as chairman. Former COO of Marvel Entertainment Bill Jemas will serve on Alloy's board and work closely with the company on merchandising, content and business affairs.
Alloy co-founders Matt Diamond and Jim Johnson will continue to run operations as CEO and COO, respectively. They will exchange a portion of their Alloy shares for an equity interest in the acquirer. The rest of Alloy's senior management team is also expected to remain in place.
ZelnickMedia is an investment and management group, founded in 2001, which is now investing from its private equity fund ZM Capital, established in 2008.
Alloy Digital Network's collection of Web sites reaches a total monthly audience of 51 million visitors, ages 12-24, according to comScore. The company also recently launched Alloy TV, a digital entertainment network that creates original, short-form sponsored programs for young adults. Alloy owns other youth-focused assets including Channel One, an in-school broadcast network that reaches nearly 6 million young people.
"Alloy has earned a unique position as both creator and distributor of content that has captured the imagination of the millennial generation," said Strauss Zelnick, who co-founded the private equity fund. "What's different about millennials is that they've grown up knowing no boundaries between media platforms. Alloy has been extremely savvy about developing properties that cross multiple platforms."
Before setting up ZelnickMedia, Zelnick was the president, CEO of global music and entertainment company BMG Entertainment.