New York
– An investor group led by ZelnickMedia announced on Thursday that it will
acquire Alloy, a youth-focused ad network and entertainment producer, in a deal
valued at $126.5 million.
The purchase price of $9.80 per share represents a
premium of 27% over Alloy’s recent average share price.
Members of Alloy’s senior
management will also invest in the transaction in conjunction with
ZelnickMedia.
The investors said that they "aim to build Alloy into a
leading entertainment and media brand for the millennial generation (ages
10-29)," noting that the company’s entertainment unit has produced hits
such as "Gossip Girl," "The Vampire Diaries" and "The
Sisterhood of the Traveling Pants."
Alloy’s ad network attracts a total
monthly audience of 51 million unique visitors.
Oxygen Network founder Geraldine
Laybourne will serve as chairman of the company, while Alloy’s co-founders,
Matt Diamond and Jim Johnson, will continue to run the company as CEO and COO,
respectively.
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