Nine Entertainment has offloaded its online youth media media brand, Pedestrian.TV, to ASX-listed media conglomerate Vinyl Group for a song, ending a decade-long experiment that cost the shrinking media giant more than $49 million.
Vinyl (ASX:VNL) is acquiring 100% of Pedestrian Group from Nine Digital for “nominal consideration” with no other cash, debt, scrip or ongoing royalties involved.
The embattled TV and publishing empire (ASX: NEC), which has fallen from a $4 billion valuation to just $1.18B in seven years, has been offloading assets, selling Domain last year, along with its regional print media business, ACM, and more recently, its radio stations and regional TV network.
Pedestrian, founded in 2005 by Chris Wirasinha and Oscar Martin, was valued at $100 million at its peak. Nine paid $9.3M in 2015 for 60%, and three years later, another $39.3M for the rest of the company.
Wirasinha now runs the adtech startup Linkby, which raised a $23M Series B last year.
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During the Nine-Fairfax merger in December 2018, Fairfax-owned digital company Allure Media, which published Australian versions global media titles Lifehacker, Kotaku, Gizmodo, PopSugar, and Business Insider, was merged with Pedestrian.
When the Business Insider licence ended in 2022, Pedestrian launched a web3-crypto-focused site, The Chainsaw. But it failed to gain traction as scandals and collapses hit the sector. Its editors left in 2023. In mid-2024, Pedestrian was resructered with CEO Matt Rowley departing, alongside multiple redundancies, and the end to licensing deals for Lifehacker, Kotaku and Gizmodo, as well as Vice and Refinery 29.
PopSugar, incidentally, is already in Vinyl’s hands, after it acquired Val Morgan Digital for $10.5 million from Hoyts in March this year. VMD publishes a range of online media brands under licence, including Fandom, PopSugar, BuzzFeed, Tasty, Vox Media and LADbible.
Modest EBITDA boost
The current Pedestrian portfolio includes its online news site, a jobs platform, a studio and Openair Cinemas.
The acquisition is expected to add between $600,000 and $800,000 to Vinyl’s of pro forma EBITDA in FY27. The deal is expected to complete by June 15
Vinyl shares were placed in a trading halt this morning at the company’s request until Thursday, June 11.
WiseTech Global’s billionaire founder Richard White owns more than a third of Vinyl through his investment fund RealWise Holdings, having invested an estimated $20m in the business.
Vinyl owns blockchain music startup Serenade, music credits database Jaxsta, the Tinder-style musician social network Vampr, trade publication Mediaweek, and The Brag Media, which publishes Rolling Stone, and Variety, as well as Concrete Playground, which it acquired in late 2024 for $5 million.
But the business has been embroiled in restructures, dramatic staff changes and legal fight amid ongoing losses and promises of breaking even facing extending timelines to balance the books.
The former Brag Media MD sued for unfair dismissal and Vinyl responded with allegations of financial misconduct.
Another case with a former Brag Media executive was settled last year.
Another restructure
Last week Vinyl restructured again with its head of editorial operations and Mediaweek’s editorial boss among those made redundant.
Vinyl’s March quarter 2026 results showed the business burning through $2.7M in cash out, alongside cash receipts of $4M.
Staff costs were down 4% quarter-on-quarter. Cash payments for product manufacturing and operating costs remained slightly higher in Q3 FY26 due to the timing of payments for expenses incurred in Q2, the company said.
Vinyl’s half-yearly results to December 31 saw revenue rise 49% on 12 months earlier, to reach $11.4 million. Operating expenses fell 13% to $8.1m, with a net loss after tax of $3m, more than half the $6.9m NPAT loss in 1H FY25.
Vinyl said the acquisition of Pedestrian Group further strengthens its position as a leading culture, entertainment and youth media network for advertisers.
Group CEO Josh Simons said Pedestrian distinctive voice, loyal audience and strong reputation in culture and entertainment.
“The addition of Pedestrian’s brand further rebalances Vinyl’s portfolio of cultural assets through a mix of
licensed and wholly owned, original IP,” he said.
“The transaction also reflects the strength of Vinyl Group’s acquisition strategy. We are continuing to
secure high-quality cultural assets through capital-efficient structures, validate our adaptive media
flywheel.”
Vinyl shares currently sit at $0.06 cents, down from a high of $0.145 cents 12 months ago.
Morningstar Quant believes the company is undervalued, putting fair value at $0.09 cents.
