Vice Media is valuing itself at about $3.6 billion after acquiring Refinery29 for a reported $400 million.

WHO: Founded in 2005, Refinery29 is a global media company that describes itself as a digital media and entertainment company dedicated to inspiring young women to live an informed and well-rounded life.

Vice started as a free punk magazine in Montreal in 1994. Over the years, it has largely sloughed off its brash tone to become a global media company with about 3,000 employees. Backed by media giants like the Walt Disney Company and 21st Century Fox, as well as the private equity firm TPG, Vice Media now includes an advertising agency, a TV network, and a film production arm.

WHY: The strategy behind the deal is that Vice will be able to take Refinery29’s smaller business operations and integrate it into Vice Media’s larger and more global footprint. The companies see benefits in not only expanding online reach but also gaining synergies.

IN THEIR OWN WORDS: “This is an expansive moment for independent media,” Nancy Dubuc, CEO of Vice Media Group, said in a statement. She signaled that the acquisition isn’t about making cutbacks: “We will not allow a rapidly consolidating media ecosystem to constrict young people’s choices or their ability to freely express themselves about the things they care about most. At Vice and Refinery29, the megaphone is theirs to use and the platforms are theirs to build with us.”

“Along with our co-founders Christene Barberich and Piera Gelardi, and our incredible team, we built Refinery29 with a mission to represent and inspire women. Over the past 15 years, we have been at the forefront of redefining media, achieving great scale in our digital business while successfully diversifying from live events to Originals,” said Philippe von Borries and Justin Stefano, Co-CEOs, Refinery29. “This transformational partnership will allow our mission and business to flourish further. We are proud to partner with Nancy and VICE Media Group, and we are confident that together we will be able to expand our vital role in shaping culture and positively impacting the world for young people everywhere.”

DETAILS:

• Financials of the deal were not disclosed. Variety reported that Vice will give Refinery29’s shareholders stock for the most part “with a smaller cash component.” The New York Times valued the deal at $400 million. The Financial Times said the buyout will put a value on the combined entity of $4 billion, which is notably less than “the $5.7 billion valuation Vice Media boasted a little over two years ago,” Variety noted.
• Refinery29’s financial backers are effectively trading their Refinery29 investments for stock in Vice Media since the deal includes little cash.
• Refinery29 executives have said the company generated about $100 million in annual sales last year.
• Refinery29 raised a total of $125.4 million in venture funding over its lifetime including Turner (now part of AT&T’s WarnerMedia), Discovery, WPP, Hearst, and Stripes Group.
• This marks the sixth acquisition for Vice, according to Crunchbase data.
• Vice has raised a total of $1.7 billion in a combination of debt financing, venture funding, and private equity.
• The new company will be called Vice Media Group; Refinery29, which caters to a female audience, will continue to operate as an independent brand.
• The management structure for the combined company has yet to be determined, although Vice said the Refinery29 business will report directly into Dubuc.