Literally Media Acquires Mel Magazine from Recurrent Ventures

Comedy and entertainment media company Literally Media acquired men’s lifestyle and entertainment title Mel Magazine from Recurrent Ventures Friday, according to Literally Media CEO Oren Katzeff. Literally Media, which is owned by Israeli venture capital firm 44 Ventures, financed the acquisition internally but wouldn't share the price. “With Mel, we have a dedicated brand, loyal audience and distinct editorial voice,” Katzeff said. “Where there is so much noise online, the opportunity to land an established brand is a huge win and part of our broader strategy for growing the company.” The property will join Literally Media's growing portfolio, which includes early internet staples like Cracked.com, Know Your Meme and Cheezburger. It will relaunch early next year. Recurrent Ventures Lays Off Entire Mel Magazine Staff The publisher is the latest in a series of beloved brands—alongside Gawker, Jezebel and Paper Magazine—to be shuttered and subsequently revived under new ownership this year. The trend reflects a fundamental truth of the economics of digital media, which is that audience fervor is no guarantee of financial viability. Still, as social and search traffic wane, brand equity and direct readership have grown more valuable. An updated editorial and commercial strategy Literally Media has no plans to alter the signature editorial style and subject matter of Mel Magazine, according to Katzeff, who joined the company last March after stints at Condé Nast Entertainment and Tastemade. However, the publisher will emphasize adapting its intellectual property to new channels, with a particular focus on video and audio. Certain stories, including an exposé on truck-driving serial killers and the story behind a $65 million art heist, have already been flagged for potential expansions. Literally Media generates roughly 70% of its revenue from on-site advertising, 13% from video advertising and 17% from a mix of content syndication, commerce and events. The 50-person operation, which is profitable, hopes to increase the portion of its revenue coming from video sponsorship and direct deals, and it plans to hire a direct sales team in early 2024. Literally Media has more than 3 million cumulative subscribers on YouTube and 35 million followers across social channels. The company plans to plug Mel Magazine into its video operations, potentially with talking head analyses and short videos. The publisher comes to Literally Media with a small preexisting video footprint of around 20 short documentaries, according to Katzeff. Mel Magazine plans to hire a senior editorial leader, as well as a mix of three to five part- and full-time staff. Ideally, its headcount will be a combination of former Mel Magazine contributors and new, rising talent. An ownership carousel and brand safety concerns Literally Media will be the third owner of Mel Magazine in three years. The publisher was originally founded in 2015 as a top-of-funnel marketing vehicle for Dollar Shave Club, during which time it had no advertising on its site and generated no reader revenue. A change in ownership at DSC led the company to sell Mel Magazine to Recurrent Ventures in July 2021, but the arrangement proved a poor fit and Recurrent Ventures shut down the title a year later. “Mel is a beloved brand with a history of inclusive and unique storytelling," Recurrent Ventures CEO Andrew Perlman said in a statement. "Although it did not fit within our portfolio or go-forward strategy, we have a lot of respect for its content and legacy. We are pleased that we were able to find the right home for the brand." In Literally Media, Mel Magazine will have something of a homecoming. Katzeff played an integral role in helping create the original concept for the magazine when it launched at DSC. The media company also counts Josh Schollmeyer—formerly the editor in chief of Mel Magazine—as a key member of its staff, although he will play no formal role with the publisher, according to Katzeff. Complicating its commercial prospects, Mel Magazine owes its cult readership in part to its penchant for salacious subject matter, including recent explorations of vajazzling, incel culture and strip clubs in the metaverse. Advertiser concerns over the brand suitability of such content played a significant role in the November closure of Jezebel, and Mel Magazine will have to contend with a programmatic ecosystem in which more salacious content monetizes poorly compared with more anodyne writing. “We are going to be spending more time growing our newsletters and direct audience in 2024,” Katzeff said. “When you package those opportunities together, it creates a more appetizing opportunity for brands in a way that Mel hadn’t done in the past.”

Merger & Acquisition News

Literally Media Acquires Mel Magazine From Recurrent Ventures

The publisher will relaunch early next year under its third ownership group

Mark Stenberg

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