LBG Media acquires Betches for up to $54 million

LBG Media, parent company of LADbible Group and a multi-brand, multi-channel digital youth publisher, announced the acquisition of Betches Media, a United States-based media brand founded by women and specializing in producing and publishing women-specific digital media content.

The acquisition entails an initial cash payment of $24 million, which will be covered from the company’s existing cash reserves. Additionally, there is a potential for up to an additional $30 million in cash payments, which will be disbursed in installments, contingent on Betches meeting specific revenue and profitability milestones through 2026.

Founded in New York in 2011 by three female co-founders, Betches has emerged as a rapidly expanding, cash-positive, and profitable enterprise, with 92% of its revenue sourced directly. The majority of its revenue comes from enduring partnerships with renowned blue-chip brands. Boasting a sizable following of around 32 million followers, Betches maintains a highly engaged audience and conveys its distinct perspective through social media, branded collaborations, live events, merchandise, podcasts, and newsletters. Approximately 86% of its audience comprises women who are drawn to brands that cater to various areas of interest such as parenting, weddings, travel, relationships, and humor.

In the fiscal year ending on December 31, 2022, Betches reported revenue exceeding $14.6 million (unaudited) and achieved $3.9 million in Adjusted EBITDA, equating to a margin of approximately 27%. Notably, this represented a remarkable 44% increase in revenue compared to the preceding year.

“The joining of LBG Media and Betches is an incredibly exciting milestone in the Group’s story, progressing a key element of the strategy that we set out at the time of IPO, and since. This deal brings together two highly successful, growth-focused businesses with complementary brands and skills, similar cultures and amazing teams, to create a world-class proposition. The opportunity for the enlarged group is exciting, as we will be better positioned to capitalise on the significant US audience and advertising market. I look forward to welcoming the Betches team to LBG Media,” said Solly Solomou, CEO of LBG. 

“It’s a very exciting day in the history of Betches as we begin this next chapter with LBG Media, a highly influential media owner with massive global reach. Betches has been on the cutting edge of women’s media and disrupting internet culture in the US for over a decade, and this acquisition will enable us to achieve new heights in our global footprint, new original programming, brand partners, and much more. The synergy between LBG and Betches is unmatched, with our similar origin stories and passion for connecting with millennial and Gen Z audiences, making this a natural next step for our company. We remain committed to our ambition to be the number one humour platform for women globally and are confident that the legacy we have built for Betches will continue to thrive with the newfound support of LBG Media and its leadership,” said Aleen Dreksler, CEO of Betches.