Next Issue, a California-based publishing platform has raised USD 50 million led by private-equity firm Kohlberg Kravis Roberts & Co. The new funding will be used to ramp up its marketing.
As per WSJ report, KKR didn’t disclose its valuation for Next Issue, but will wind up with a minority stake in the media startup. Richard Sarnoff, managing director and head of KKR’s media and communications group , is joining Next Issue’s board.
Next Issue is a joint venture between publishers Conde Nast, Hearst, Meredith, News Corp. and Time Inc. Founded in 2009, the company’s subscription service subscription service that offers unlimited access to as many as 145 magazine titles for a monthly fee. But, new users can try it for 30 days without charge.
The company’s CEO Morgan Guenther said it has attracted more than 150,000 subscribers and offers two subscription packages i.e For USD 9.99 a month, consumers get unlimited access to monthly publications including Vogue, Esquire and Fortune and with an additional USD 5 a month, its subscribers can also access weekly magazines including the New Yorker, Sports Illustrated and People.
Guenther said he believes the company can eventually have tens of millions of customers, but that will require fighting for a share of consumers’ wallets along with other media services.
Two days back, online publisher company, Vox Media has also secured USD 46.5 million in series E round from New York investment firm General Atlantic, at a valuation of USD 380 million.
In August, another news and entertainment site, BuzzFeed had raised USD 50 million at a valuation of USD 850 million. Back in July, Media start-up news and commentary website Scroll.in has secured an undisclosed amount led by Omidyar Network.
Recently India’s very own counterpart of BuzzFeed, ScoopWhoop, also had raised INR 10 crore. The investment activity in digital media space seems to be at a all time high. Looks like this is the new found love for investors around the globe.