Vinyl Group has entered into an agreement with the Hoyts Group to acquire Val Morgan Digital for $10.5 million in the wake of posting a loss for the first half of 2026 financial year.
The deal comprises $7 million in cash and $3.5 million in shares, with Hoyts Group chief executive and president Damian Keogh to join the Vinyl Group Board. Vinyl Group is backed by billionaires including WiseTech chair Richard White and Soul Patts boss Robert Millner, who are helping fund the acquisition.
The two companies plan to enter a long-term commercial partnership that will see Val Morgan cover cross selling opportunities with Vinyl Group across its cinema and out-of-home businesses.
Val Morgan Digital’s assets include key partnerships and ANZ licences with BuzzFeed, Fandom, LADbible Group and Vox Media. They complement Vinyl Group’s publishing arm, Vinyl Media, whose media brands include Mediaweek, Concrete Playground and Tone Deaf; as well as the licenses the Rolling Stone, Refinery29 and Variety.
Following completion of Val Morgan Digital, Vinyl Media said its combined audience reach is expected to reach approximately 47 per cent of Australians online in the ‘Entertainment’ category and 51 per cent in the ‘News’ category, according to ipsos figures.
The deal has been inked in spite of Vinyl Group posting a $3.1 million loss in H1 FY26 (an improvement on the $6.9 million loss in H1 FY25). Vinyl improved its revenue by 49 per cent to $11.4 million over the corresponding period and claims it is on track to positive EBITDA in FY27 (see below) in a strategy that strips costs from the business and uses AI technology to find efficiencies, including in its newrooms.
The acquisition hungry business expects the addition of Val Morgan Digital, which is currently led by Amanda Bardas, to result in an 73 per cent increase to Vinyl Media revenue and $2.5 million in annualised EBITDA, while accelerating the Group’s strategy of building a scaled, diversified publishing business.
“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,” Vinyl Group CEO and executive director Josh Simons said.
“I am excited to oversee our strategy as we usher in a new era of Adaptive Media at scale in Australia. This will enable advertisers meaningful brand connections in an integrated and immersive ecosystem, through a mix of our culture distribution channels.”
The Hoyts Group CEO and president Damian Keogh said: “This transaction recognises the strength of consolidation, bringing the assets of Val Morgan Digital into Vinyl Group. We have a large portfolio of premium cultural assets together with significant national reach, providing a unique and compelling value proposition for advertisers.
“I am excited to be joining the Board, working with Josh and his passionate team to contribute to Vinyl Group’s next phase of growth.”
