After taking a bath on the original acquisition, Daily Mail sells off Elite Daily to Bustle
The owner of the Daily Mail is acknowledging that one of its investment has not gone as expected, selling off the video-sharing site Elite Daily only two years after acquiring it for around $40 million. Late last year, Daily Mail and General Trust plc wrote off $31 million based on the declining value of its property.
The new owner is Bustle, the digital media property that targets millennial women. The company will now rebrand as Bustle Digital Group.
The sale price for Elite Daily was not announced.
“Elite Daily is beloved by millions of readers, most of whom are young women,” said Bryan Goldberg, chief executive of Bustle Digital Group, “and their highly engaged audience will add further depth to Bustle Digital Group’s portfolio. With Bustle as the largest independent website for women, and Romper growing rapidly amongst millennial moms, the acquisition of Elite Daily further extends our demographic leadership. We see a tremendous opportunity to build off of Elite Daily’s strong capabilities in video, social, and native advertising.”
Here is the announcement from DMGT:
LONDON, UK – April 17, 2017 — Daily Mail and General Trust plc (DMGT) today announces the sale of Elite Daily (ED) to Bustle Digital Group (BDG), the premier digital destination for millennial women.
DMGT acquired ED in January 2015 and is proud since then to have helped consolidate its influential position as a publisher of quality written and video content for millennials across the United States and around the world.
In December 2016, as part of its strategic review, DMGT announced that it planned to increase its portfolio focus. The sale of ED to BDG is another step in delivering a more streamlined group, unlocking value across the portfolio and focusing on our major investment and growth opportunities such as DailyMail.com.
BDG’s focus on branded content and millennial audiences make it the perfect fit for Elite Daily today and into the future. This will see the combined millennial reach of all brands in the Bustle Digital Group as at 80 million unique readers per month across the network.
This change enables DMGT’s consumer business dmg media to concentrate its energy and resources fully on its flagship US digital title, DailyMail.comand our ongoing commitment to expand and deepen its editorial offering and maintain its robust audience growth on the web, on Snapchat Discover and in particular on the exciting challenge of producing the recently-announced DailyMailTV show that launches in Fall 2017.
The sale of Elite Daily means DailyMail.com can also refocus its US sales and marketing team on deeper, strategic commercial partnerships.
As a result of the changes announced today MailOnline moves a significant step closer to profitability.
MailOnline recorded increases in the first half year of FY17 of over 25% in US revenues and approximately 20% in overall global revenues over the same period the previous year. Both numbers exclude the benefit of local currency performance against the UK pound.
DMGT would like to express its gratitude to ED Publisher Emily Ingram for her service over the past year and for all her hard work in making this sale possible. After overseeing the transition of ED to its new owners, Emily will shortly be taking up a new role within DMGT.