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Sydney-based digital media and music company Vinyl Group (ASX: VNL) has completed its $10.5 million acquisition of Val Morgan Digital from Hoyts Group subsidiary Val Morgan, in a deal the company says will lift its media revenue by 73 per cent.
The acquisition, which was first announced as a binding agreement on 2 March 2026, comprises $7 million in cash and $3.5 million in Vinyl Group shares issued at 8.37 cents each. The 41.8 million shares issued to the vendor are subject to a 24-month escrow period.
Val Morgan Digital delivered unaudited revenue of $10.7 million in calendar year 2025 and is expected to contribute pro forma annualised EBITDA of $2.5 million following integration.
The acquired assets include Australian and New Zealand advertising licences for BuzzFeed, Fandom, LADbible Group and Vox Media, properties that collectively reach 47 per cent of Australia's entertainment audience and 51 per cent of the news audience, according to Ipsos iris data from January 2026.
In conjunction with the sale, Vinyl Group has entered into a cooperation and services agreement with Val Morgan to cover outdoor and cinema advertising cross-sell capabilities.
Vinyl Group says the partnership is intended to enhance the company's integrated offering and "create further value for advertisers through multi-channel campaign opportunities".
“The completion of the Val Morgan Digital acquisition materially enhances Vinyl Group’s scale and positions us to execute on our Adaptive Media strategy at scale," says Vinyl Group CEO Josh Simons.
"This is a defining step in building one of Australia’s most influential culture, technology and media platforms.”
The cash component of the deal was funded through an unsecured $10 million loan facility provided by non-executive chairman and top-10 shareholder Robert Kenneth Gaunt.
The five-year facility carries interest at the RBA cash rate plus 5 per cent, with $3 million of the total earmarked for working capital purposes. The loan was secured on 31 March 2026 ahead of completion of the acquisition today.
Vinyl Group says the acquisition significantly scales its digital media division by combining its existing owned-and-operated music and culture platforms with Val Morgan Digital's portfolio of premium licensed content brands.
As part of the transaction, HOYTS Group CEO Damian Keogh has joined the Vinyl Group board as a non-executive director.
Keogh brings more than 25 years of senior media and commercial leadership experience to Vinyl Group and is expected to help drive the company's growth, strategic partnerships and execution, as well as the integration of the Val Morgan Digital assets into Vinyl Media
“This transaction brings together a powerful portfolio of premium cultural assets with significant national reach. I am excited to join the board and work with Josh and the team as Vinyl Group enters its next phase of growth,” says Keogh.
Keogh's appointment has coincided with the resignation of non-executive director Linda Jenkinson, who departed the board effective immediately upon completion of the deal.
The news comes as Vinyl Group continues to build out its digital media and technology operations following its pivot from music rights management.
The addition of Val Morgan Digital's established advertiser relationships and licensed content network gives the group a considerably larger footprint in the Australian digital advertising market.
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