Vinyl Group has struck a deal to acquire Val Morgan Digital from cinema operator Hoyts, continuing an aggressive growth strategy led by billionaire investor Richard White.

The transaction values Val Morgan Digital at A$10.5 million, comprising A$7 million in cash with the remaining consideration to be paid in shares. Despite the relatively modest price, the businesses involved carry significant weight. Hoyts is owned by Chinese conglomerate Dalian Wanda, and the digital media arm being sold maintains partnerships and licensing agreements with global brands including BuzzFeed, LADbible and Vox Media.

As part of the agreement, Hoyts chief executive Damian Keogh is expected to join the board of Vinyl Group once the transaction is finalised.

Vinyl Group, previously known as Jaxsta, has a market capitalisation of approximately A$129 million on the ASX. The company controls Australian licences for a portfolio of prominent media titles such as Rolling Stone, Variety, The Hollywood Reporter and Concrete Playground. Its shareholder register includes high-profile investors such as Richard White and Soul Patts chairman Robert Millner, who have supported the company’s expansion initiatives.

Val Morgan Digital generated revenue of A$10.7 million in 2025. Upon completion, the acquisition is projected to lift Vinyl Media’s revenue by roughly 73 per cent and contribute A$2.5 million in pro forma EBITDA to the listed entity.

According to Keogh, the enlarged group is expected to reach around 47 per cent of Australians online within the entertainment category and 51 per cent in the news category. He said this scale would position the company as a stronger challenger to established media players including Nine and News Corp Australia, offering advertisers a broader and more integrated platform.

Vinyl chief executive Josh Simons said the purchase would significantly expand the group’s footprint and reinforce its status as one of the country’s fastest growing media businesses. He added that the combined network would provide advertisers with more cohesive opportunities to connect with audiences across multiple channels.

Hoyts’ decision to divest the digital unit follows a broader ownership transition. In 2024, its parent company Beijing Wanda Investment Group agreed to sell the cinema chain to Hong Kong-listed China Ruyi, an investment group focused on streaming and content production.

The latest acquisition marks another step in Vinyl Group’s strategy to assemble a diversified media and advertising portfolio capable of competing more directly with Australia’s dominant publishing and broadcast organisations.