Newspaper chain New Media trades advertising for equity stake in Direct Eats
NEW YORK, NY – June 26, 2015 — New Media Investment Group Inc. announced today that it has entered into an exciting new affiliation with Direct Eats. Direct Eats is an online specialty, gourmet and naturals foods marketplace redefining how consumers find and purchase food. In addition to providing consumers with access to specialty foods based on their personal taste or diet, all of the products are shipped for free. New Media will provide Direct Eats with advertising across all of its local markets in exchange for a 12.5 percent equity stake in Direct Eats.
Michael E. Reed, President and Chief Executive Officer of New Media commented, “We are excited to be partnering with Direct Eats and see a tremendous opportunity to leverage our newspaper’s advertising reach and Propel’s products and services to help Direct Eats grow their brand. Direct Eats is part of a large and growing business segment, and we believe New Media is well positioned to connect Direct Eats with potential customers throughout the U.S.”
“We believe New Media brings great value to Direct Eats,” said David Hack, Founder and Executive Chairman of Direct Eats. “With their expansive reach across the country, reaching nearly 20 million consumers each week, combined with their aggressive growth strategy and exceptional marketing capabilities, New Media is the ideal partner to help us rapidly grow our business.”