TheSkimm, a digital media company aimed at millennial women, has hired JPMorgan Chase & Co. to evaluate transaction offers, sources told Axios.
By the numbers: The company brought in around $20 million in revenue in 2019, per source. Its management has told stakeholders it expects this year’s revenue to be nearly double that figure by the end of the year.
Details: Sources say the company plans to sell to non-media companies, such as financial services companies and luxury brands that are desperate to reach millennial women.
- He also explored some strategic partnerships, which would be with media companies, including being part of a SPAC rollup.
- He’s had a few conversations with pure media companies, like Discovery, which announced its own mega-deal with WarnerMedia on Monday.
- The company officially engaged JPMC a few weeks ago to evaluate incoming offers and partnerships.
Be smart: The value of TheSkimm for a product or service company may be greater than it would be for a traditional media company.
- TheSkimm is one of the few selling assets that could help a brand reach millennial women. (Its main newsletter The Daily Skimm has over 7.5 million active subscribers, mostly women under 35 years.)
- Its finances may be a harder sell for a traditional media company, looking to maximize profits from content, as opposed to one selling goods or services to a niche audience of millennial women.
- TheSkimm has raised almost $30 million from several investors, including GV (Google Ventures), Goldman Sachs, RRE Ventures and Homebrew.
The big picture: More businesses that aren’t traditional media companies have explored such offerings as a way to boost customer acquisition.
- For example, HubSpot, a publicly traded marketing software company, bought The Hustle, an email newsletter company for entrepreneurs, in February for $27 million.
- TheSkimm’s investments in financial literacy content for millennial women can make them an attractive asset to a tech or financial services company. During the pandemic, he launched a financial literacy vertical called SkimmMoney alongside a virtual course program called “SkimmU.”
Between the lines: Rumors and speculationsnot around TheSkimm’s sales prospects have been whirling for years, as the company is one of the last standalone digital media companies to buy.
- More and more media companies are consolidating to better compete with tech giants like Facebook or Google for eyeballs and attention.
