Billionaire Richard White spends $11m on Rolling Stone’s local owner
Australia’s wealthiest chief executive, WiseTech billionaire Richard White, has spent $11 million to bankroll the takeover of music publisher The Brag Media, which owns the local license to mastheads Rolling Stone and Variety.
Mr White, a former musician who used to repair guitars for AC/DC and The Angels, has doubled down on the music industry in the acquisition. He will own more than a third of ASX-listed Vinyl Group by funding its purchase of The Brag. It is his first foray into the world of media.
WiseTech billionaire Richard White. Peter Rae
The Brag licenses some of the biggest magazine and entertainment brands in the world, like The Hollywood Reporter, Billboard, Rotten Tomatoes and HypeBeast for the local market. It makes money through sponsored content, music and editorial coverage, and events.
In June, Mr White bought a 9.7 per cent stake in what was then called Jaxsta Limited through his personal RealWise Group company. Three months later, Songtradr, the $880 million B2B music licensing company in which Mr White also owns a stake, bought a further 21 per cent.
Jaxsta, since rebadged as Vinyl Group, owns the namesake music credit database, music networking platform Vampr and online record store Vinyl.com. It is led by Josh Simons.
“I have watched closely as Josh has built Vinyl Group’s revenue and made substantial business gains since taking my initial investment,” Mr White said in a statement.
“I’ve also noted that Luke and his dedicated team at The Brag Media have rapidly grown Brag into one of Australia’s most influential media and creative businesses. There’s no doubt that iconic brands like Rolling Stone and Variety make sense and add value.”
The Brag Media chief executive Luke Girgis.
RealWise will fund the acquisition through an $11 million placement and debt facility. If it is approved by Vinyl’s shareholders, Mr White will emerge with a further 28.9 per cent of Vinyl as a result, taking his stake to 34.8 per cent.
The Brag has flown somewhat under the radar as a media company. It claims to reach 10 million readers a month. The combined revenue of the Vinyl and The Brag would have been $9 million in the 2023 financial year.
The acquisition involves paying $8 million in cash, with another $2 million payable in cash or stock depending on The Brag hitting revenue and earnings targets in the 2024 calendar year.
The Brag’s chief executive, Luke Girgis, has joined the company for a minimum of two years, receiving 5 million options upon completion of the transaction. “The next phase in the evolution of The Brag media will take place under the umbrella of Australia’s only ASX-listed music business,” Mr Girgis said.
Vinyl’s Mr Simons said he had identified “several impactful synergies” between Vinyl and The Brag, which would “deliver immediate cost efficiencies and revenue”.
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out moreRead More
Latest In Media & marketing
Fetching latest articles