Digitalbox has acquired Tab Media, the publisher of the youth online news website The Tab, for £750,000 in cash.
The digital media business, which owns The Daily Mash, has also announced a proposed direct subscription to raise £1.2m, before expenses, through a subscription for 24 million new ordinary shares in the company, at a price of 4.9 per share.
Robin Miller, chairman of DigitalBox, has ‘‘indicated his willingness to resign’’ and is to step down from the board, as part of the subscription agreement.
The company is preparing to search for independent non-executive chairman candidates as a replacement for Miller.
James Carter, chief executive of Digitalbox said: ‘‘The Tab is the UK’s leading youth culture platform fuelled by students and a pro team of journalists who love being first with the most relevant stories.
‘‘The Tab provides a really exciting addition to our portfolio. As well as providing insights into youth and student culture, it is an important training ground for journalists. As achieved with The Daily Mash, our technology platform can help drive traffic and advertising revenue to support the site.’’
He added: ‘‘Since we acquired The Daily Mash in 2019, we have grown traffic and revenue whilst allowing the editorial team to get on with what they do best, and we aim to do the same with the Tab.
‘‘We very much look forward to working with Editor-in-Chief, Grace Vielma and her team as we look to grow and enhance The Tab.’’
Jack Rivlin, co-founder and chief executive of Tab Media said: ‘‘I’m thrilled The Tab is joining such an exciting and fast-growing company, which has proven it can combine influential brands, huge audiences and a profitable business model.
‘‘We received a number of bids during this process, but Digitalbox stood out as a business with a fantastic track record, run by extremely trustworthy people.’’
He added: ‘‘This is an important moment for our staff and our huge network of student journalists, who are now part of a company destined to become a major force in the media industry.
‘‘They will work alongside talented digital journalists at Entertainment Daily and the iconic Daily Mash, which we have admired for a long time.’’