Graham Holdings Completes Acquisition of Leaf Group Ltd.

Rhea-AI Summary

Graham Holdings Company (NYSE: GHC) has successfully completed its acquisition of Leaf Group Ltd. (NYSE: LEAF) for $8.50 per share, amounting to approximately $323 million in total. Leaf Group, based in Santa Monica, CA, is a consumer internet entity known for its creator-driven brands that cater to audiences in lifestyle categories such as fitness, wellness, home, art, and design. The acquisition aims to strengthen Graham Holdings' market position by expanding its portfolio in these growing segments.

Positive

• Acquisition of Leaf Group enhances GHC's portfolio in lifestyle categories.
• Potential for revenue growth through creator-driven brands.

Negative

• Transaction valued at $323 million may strain GHC's finances.

Graham Holdings Company (NYSE: GHC) reported today that it has closed on the previously announced acquisition of Leaf Group Ltd. (NYSE: LEAF) for $8.50 per share in an all cash transaction valued at approximately $323 million.

Headquartered in Santa Monica, CA, Leaf Group is a consumer internet company that builds enduring, creator-driven brands that reach passionate audiences in large and growing lifestyle categories, including fitness and wellness (Well+Good, Livestrong.com and MyPlate App), and home, art and design (Saatchi Art, Society6 and Hunker).

View source version on businesswire.com: https://www.businesswire.com/news/home/20210614005446/en/

FAQ

What is the purpose of Graham Holdings' acquisition of Leaf Group?

The acquisition aims to strengthen Graham Holdings' portfolio in growing lifestyle categories, enhancing its market position.

How much did Graham Holdings pay for Leaf Group?

Graham Holdings acquired Leaf Group for $8.50 per share, totaling approximately $323 million.

What are the key brands under Leaf Group?

Key brands include Well+Good, Livestrong.com, and Saatchi Art, focusing on fitness, wellness, home, art, and design.

When was the acquisition of Leaf Group completed?

The acquisition was completed today, as announced in the press release.

What impact might this acquisition have on GHC's future?

The acquisition may lead to revenue growth and increased market presence by leveraging Leaf Group's creator-driven brands.