Vinyl Group to acquire Val Morgan Digital, HOYTS CEO joins board

ASX-listed Vinyl Group has entered a binding agreement to acquire the digital assets of Val Morgan Digital for $10.5 million, in a move that significantly expands its audience scale and reshapes the competitive landscape in Australian digital publishing.

The deal comprises $7 million in cash and $3.5 million in Vinyl shares, subject to a 24-month escrow. Completion is expected within a month, subject to customary conditions.

Val Morgan Digital, a subsidiary of The HOYTS Group, delivered unaudited CY25 revenue of $10.7 million. Post-integration, the business is expected to contribute approximately $2.5 million in annualised EBITDA on a pro forma basis, an estimated 73% bump to Vinyl Media revenue.

The acquisition folds key ANZ publishing licences and partnerships, including BuzzFeed, Fandom, LADbible Group and Vox Media, into Vinyl’s portfolio. On completion, Vinyl Media’s combined audience reach is expected to hit approximately 47% of Australians online in the entertainment category and 51% in news, positioning the group at a comparable digital scale to major players including Nine and News Corp Australia.

Vinyl Group CEO Josh Simons described the deal as transformational.

“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,” Simons said.

“I am excited to oversee our strategy as we usher in a new era of Adaptive Media at scale in Australia.”

Beyond audience expansion, the transaction includes a cooperation and services agreement covering cinema and out-of-home cross-sell capabilities, opening up integrated inventory opportunities across digital, outdoor and cinema environments.

In a significant governance move, Damian Keogh, CEO and president of The HOYTS Group, will join the Vinyl Group board as a non-executive director upon completion. Keogh said the transaction reflected the strategic logic of consolidation.

“This transaction recognises the strength of consolidation, bringing the assets of Val Morgan Digital into Vinyl Group,” he said.

“We have a large portfolio of premium cultural assets together with significant national reach, providing a unique and compelling value proposition for advertisers.”

The acquisition will be funded via a facility of up to $10 million provided by existing shareholders, with documentation being finalised.

Strategically, the move accelerates Vinyl’s ambition to build a scaled, diversified publishing business capable of competing with established media majors. It also signals continued consolidation across Australia’s digital publishing sector, as mid-tier players seek greater scale to compete for national brand budgets.

Vinyl said it will update the market on completion in line with its disclosure obligations.