Sept 24 (Reuters) – RedBird Capital Partners has agreed to acquire a majority stake in Puck in a deal valuing the five-year-old newsletter startup at about $250 million, according to a memo seen by Reuters on Thursday.
Reuters first reported last month that Puck was in advanced talks for an investment from RedBird.
The deal will give Puck additional capital to accelerate growth, including by investing further in Air Mail, hiring more talent, entering new markets, pursuing acquisitions and expanding its intellectual property into new formats and channels.
Puck acquired Air Mail, the digital magazine founded by former Vanity Fair editor Graydon Carter, last year. RedBird became an investor in Puck after the acquisition.
The latest transaction will not change Puck’s editorial independence or its business model, according to the memo.
Standard Investments and TPG, which have backed Puck since its inception, will exit the company, while RIT Capital will remain a minority investor, alongside RedBird.
Employees with vested stock or options will receive a combination of liquidity and continued ownership in the company. Puck and RedBird have also created a new equity incentive plan, the memo said.
The transaction is expected to close in about a month, subject to anticipated regulatory approval.
Founded in 2021, Puck has built a subscription-based business around journalists with established followings in media, finance, entertainment, fashion and politics.
(Reporting by Harshita Mary Varghese in Bengaluru and David French in New York; Editing by Shilpi Majumdar)
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