LBG Media, the owner of the global leader in youth publishing LADbible, has announced the acquisition of New York-based media company Betches, which focuses on digital media content production for women.
Advised by SI Partners, the sale of Betches will see major new brands added to the overall portfolio, new capabilities unlocked and improved revenue diversification. It will also mean the expansion of both LBG Media's existing 100 million US following as well as its overall audience of women.
Established in New York in 2011 by three female co-founders, all whom are remaining with the business post-sale, Betches is a fast-growing and profitable business, where 92% of revenue is direct and derived primarily from long-term, recurring partnerships. With approximately 32 million followers, they deliver unique perspectives through social, branded partnerships, live-events, merchandise, podcasts and newsletters.
The acquisition is for an initial cash consideration of $24 million, funded from existing cash resources, with up to a further $30 million cash consideration payable in instalments, subject to Betches achieving certain revenue and profitability targets to 2026. In 2022, Betches generated over $14.6 million of revenue (unaudited) and delivered $3.9 million Adjusted EBITDA, representing a margin of approximately 27%, having grown revenues by 44% on the prior year.
Betches will remain a stand-alone business, but will work alongside LBG Media's existing US team to develop larger direct brand partnership opportunities that can span LBG Media and Betches brands and audiences. This announcement builds on the successful acquisition of UNILAD in 2018, another US-focused publisher, and the Group continues to evaluate acquisition opportunities with the intention of building capabilities and/or expanding geographic reach.
Aleen Dreksler, CEO at Betches said:
"It's a very exciting day in the history of Betches as we begin this next chapter with LBG Media, a highly influential media owner with massive global reach. Betches has been on the cutting edge of women's media and disrupting internet culture in the US for over a decade, and this acquisition will enable us to achieve new heights in our global footprint, new original programming, brand partners, and much more. The synergy between LBG and Betches is unmatched, with our similar origin stories and passion for connecting with millennial and Gen Z audiences, making this a natural next step for our company. We remain committed to our ambition to be the number one humour platform for women globally and are confident that the legacy we have built for Betches will continue to thrive with the newfound support of LBG Media and its leadership."
Solly Solomou, CEO at LBG said:
"The joining of LBG Media and Betches is an incredibly exciting milestone in the Group's story, progressing a key element of the strategy that we set out at the time of IPO, and since. This deal brings together two highly successful, growth-focused businesses with complementary brands and skills, similar cultures and amazing teams, to create a world-class proposition. The opportunity for the enlarged group is exciting, as we will be better positioned to capitalise on the significant US audience and advertising market. I look forward to welcoming the Betches team to LBG Media."
