Melbourne-based adaptive media company Vinyl Group (ASX:VNL) has entered a binding asset sale agreement to acquire Val Morgan Digital from The HOYTS Group for $10.5 million.
The deal consists of $7 million in cash and $3.5 million in shares, subject to a 24-month escrow period.
The acquisition aims to strengthen Vinyl Group's portfolio and scalability by combining its existing publishing arm, Vinyl Media, with Val Morgan Digital.
Val Morgan Digital brings a substantial portfolio of cultural assets and partnerships, including licences with major brands such as BuzzFeed Inc., Fandom, LADbible Group, and Vox Media.
The acquired business delivered a 2025 revenue of $10.7 million.
Following the integration, Vinyl Group expects a pro forma annualised EBITDA contribution of $2.5 million.
The acquisition positions Vinyl Group as a major player in the Australian digital media landscape.
Post-completion, the company's combined audience reach is projected to cover approximately 47% of Australians online in the Entertainment category and 51% in the News category, comparable to established giants like Nine and News Corp Australia.
As part of the transaction, Damian Keogh, CEO and President of The HOYTS Group, will join the Vinyl Group board.
Furthermore, the companies have agreed to a long-term commercial partnership to access inventory across cinema and out-of-home platforms.
The transaction is expected to be finalised within one month, subject to customary closing conditions.