Vinyl Group acquires embattled Australian publication Mediaweek

Music company Vinyl Group has announced the acquisition of Mediaweek, an Australian media industry news website, for AU$1 million ($659,410).

The deal includes AU$500,000 ($330,000) in cash and AU$500,000 in stock. According to the Australian Financial Review (AFR), Mediaweek reported AU$2.2 million ($1.5 million) in revenue and AU$350,000 ($231,000) in profit in 2023.

Vinyl Group is known for owning the Jaxsta music credit database, Vampr networking platform, and online record store Vinyl.com.

The deal, expected to be finalised by September 30, will see former owner Trent Thomas' shares in Vinyl held in escrow for 12 months. The acquisition of Mediaweek adds to Vinyl's growing portfolio, which recently included the purchase of The Brag Media. This company licenses major mastheads like Rolling Stone and Variety in Australia.

“Mediaweek will join Vinyl Group with a mission to accelerate our trade media and events business in Australia and improve margins across these pillars,” said Josh Simons, chief executive of Vinyl Group.

“This acquisition follows a review of our media arm earlier in the year, which identified several opportunities to enhance the efficiency and reach of these operations. Further synergies are expected to be unlocked, and we look forward to announcing a managing editor for Mediaweek following its completion. This strategic asset purchase demonstrates our commitment to growing our global music and media tech portfolio.”

The anouncement of the acquisition follows news that Thomas was embroiled in allegations of workplace misconduct after an investigation by a third-party human resources firm.

The firm found that Thomas engaged in bullying and sexual harassment of Mediaweek’s staff. For example, the allegations involved the use of sexually explicit material, fostering a hostile work environment, and sharing private details about staff members in front of others.

In response, Thomas fired the firm and hired a second one. However, after the second HR firm reached the same conclusion as the first, Thomas stepped back from his leadership role at Mediaweek. 

This led to an overhaul of Mediaweek’s HR policies and the resignation of key staff members, including former editor Brittney Rigby, former deputy editor Tess Connery-Britten and columnists like Trinity P3’s founder and global CEO Darren Woolley.

According to Mediaweek, some senior staff, including general manager Sarah Chapman and editor-in-chief James Manning, remain at the publication.

“When I joined the company, there were only three of us in the office. Helping Mediaweek grow into what it is today has been one of the biggest privileges of my professional life,” Connery-Britten wrote in a post on LinkedIn. “Getting to help lead such a talented, thoughtful, and all-around wonderful group of people in the editorial team has been beyond an honour.”