An investor group led by ZelnickMedia is acquiring youth-focused entertainment company and ad network operator Alloy in a cash deal valued at $126.5 million, for a 27 percent premium over the company’s most recent closing stock price. Alloy operates a range of businesses, from development of TV series like Gossip Girl and The Vampire Diaries, as well as the Alloy Digital Network, which aggregates a collection of websites aimed at ages 12- to 24. Alloy also runs Channel One, an in-school broadcast net, and high school sports social net Takkle.com.
As part of the transaction, Geraldine Laybourne, the former Nickelodeon CEO and Oxygen Network founder, will serve as the chairman. Alloy’s co-founders, Matt Diamond and Jim Johnson, will continue to run the company as CEO and COO, respectively.
ZelnickMedia’s co-investors included Natixis Caspian Private Equity, Rosemont Solebury Co-Investment Fund, and GenSpring Family Offices. Release