Deal calls for company to pay $9.80 per share
Alloy Inc., the book packaging company behind the “Gossip Girl” and “Vampire Diaries” franchises, has struck a buyout deal with ZelnickMedia valued at $126.5 million.
Former Nickelodeon and Oxygen Media chief Geraldine Laybourne has been recruited to serve as non-executive chairman of the company’s board after the transaction is completed. Deal calls for ZelnickMedia to pay $9.80 per share for the company, which reps a 27% premium over the share’s closing price on June 23.
Alloy co-founders Matt Diamond and Jim Johnson will continue to run the Gotham-based company as CEO and chief operating officer, respectively. Diamond and Johnson will exchange their Alloy shares for equity in Zelnick Media. The remainder of the Alloy management team is expected to stay in place, including Alloy Entertainment toppers Leslie Morgenstein and Bob Levy, who have shepherded the company’s book-to-TV adaptations, which also include ABC Family’s new series “Pretty Little Liars.”
“Alloy has earned a unique position as both creator and distributor of content that has captured the imagination of the millennial generation,” said ZelnickMedia chief Strauss Zelnick. “What’s different about millennials is that they’ve grown up knowing no boundaries between media platforms. Alloy has been extremely savvy about developing properties that cross multiple platforms. With Gerry and Bill on the team, we intend to grow Alloy into a leading brand for this generation.”