There’s clearly money in teen angst and vampires. An investment group led by ZelnickMedia has agreed to acquire Alloy Inc., the company that produces “Gossip Girl” and “The Vampire Diaries,” for $126.5 million. The cash transaction, at $9.80 a share, is expected to close in the fourth quarter of this year. Members of Alloy’s senior management will exchange an as-yet undisclosed portion of their Alloy shares for an equity interest in ZelnickMedia. Shares of Alloy Thursday closed at $9.51, up 10.7 percent.
This story first appeared in the June 25, 2010 issue of WWD. Subscribe Today.
Alloy co-founders Matt Diamond and Jim Johnson, chief executive officer and chief operating officer, respectively, will continue to run the company. Geraldine Laybourne, founder of Oxygen Media, will serve as chairman. Bill Jemas, former chief operating officer of Marvel Entertainment, will sit on Alloy’s board.
Alloy, which started in 1996, acquired Delia’s Corp. in 2003 and spun it off two years later. Its digital operations today include alloy.com and delias.com, both of which sell apparel and provide content geared to female Millennials. Alloy recently launched Alloy TV, a digital network providing short-form video programming.
In the fiscal year ended Jan. 31, the firm registered a net loss of $4.9 million on revenues of $205.1 million.