G/O Media, formerly Gizmodo Media Group, has sold sports blogging site Deadspin to European firm Lineup Publishing, a new digital media rollup company, CEO Jim Spanfeller announced in a note to staff Monday.
Why it matters: The firm, which was acquired by private equity firm Great Hill Partners in 2019, has been slowly offloading sites as pressure mounts from investors to make a return on its investment.
Details: In the memo, Spanfeller said none of Deadspin’s existing staff will move over with the site as part of the deal and the new owners will “instead build a new team more in line with their editorial vision for the brand.”
- Impacted staffers were notified Monday that they were being let go from G/O Media, marking the third round of cuts at the firm in less than a year.
- Spanfeller said Lineup Publishing approached him about the sale and that the company was not “actively shopping Deadspin.”
- “The rationale behind the decision to sell included a variety of important factors that include the buyer’s editorial plans for the brand, tough competition in the sports journalism sector, and a valuation that reflected a sizable premium from our original purchase price for the site,” Spanfeller wrote in the memo.
- “While the new owners plan to be reverential to Deadpin’s unique voice, they plan to take a different content approach regarding the site’s overall sports coverage,” he added.