Horizon Media, one of the largest advertising companies not owned by the big publicly-traded entities that dominate the industry, intends to sell off a minority stake to investment firms, ending its decades of pursuing a purely go-it-alone strategy.
Horizon, long controlled by entrepreneur Bill Koenigsberg, said it had sold a piece of the company to Temasek, a Singapore investment firm. LionTree Advisors, an investment firm led by Aryeh Bourkoff, will also become an investor as part of the transaction. Financial terms were not disclosed, but Koenigsberg is to remain “the long-term majority shareholder” of the agency. Horizon was founded in 1989, employs 2,500 people and manages media investments valued at more than $9.5 billion
“Horizon sees more opportunity than ever before to take advantage of gaps in the marketplace and continue our significant growth in driving positive business outcomes for our clients. In evaluating the next evolution of Horizon, I wanted a world class partner who is like-minded strategically, has the same appetite for growth, understands the media, marketing, and technology landscape, is global in scale, and culturally aligned,” Koenigsberg said in a statement. “I found that perfect combination in Temasek and LionTree.”
Horizon is one of a handful of large firms that help advertisers allocate and invest millions of dollars in advertising, serving all the while as influential go-betweens that deal with blue-chip marketers and the media outlets they need to get the word out about their products and services. Horizon has long worked for Berkshire Hathaway’s Geico, one of the nation’s biggest ad spenders, along with Anheuser-Busch InBev’s Corona beer and CBS. Horizon is also involved in the launch of the Hoop Dreams Classic, an event that is backed by actor Michael B. Jordan and WarnerMedia among others.
But the other media buying giants, like Magna, Omnicom Media Group and GroupM, are backed by Madison Avenue giants like Interpublic Group, Omnicom Group and WPP. Koenigsberg has, over the years, chosen to remain independent — and some clients have appreciated it.
In the past, Koenigsberg has seen his company’s independence as an advantage. “Being CEO for the company for the last 30 years and having a long-term vision is an enormous competitive advantage, because when I look at my competitors — and I don’t want to go back 30 years, let me go back 10 — there have probably been 100 different CEOs at my competitor agencies,” he told Ad Age in 2020. “When a new one comes in, they feel the need to shake things up and leave a mark,” he said, adding: “There’s an inconsistency in where they’re going. For me, I’ve had a much longer runway and an ability to drive the business forward with this long-term vision.”