TPG, the private equity investor that bought RCN and Grande Communications earlier this year, is branching out into content with a $450 million minority investment in Vice Media that values the youth-oriented programmer at $5.7 billion.
TPG joins a heady group of minority investors in Vice, including The Walt Disney Co., 21stCentury Fox, A+E Networks, advertising giant WPP and Silicon Valley investor Technology Crossover Ventures.
TPG owns other media assets – its portfolio includes talent agency CAA, subscription online music pioneer Spotify, Spanish-language broadcaster Univision and film studio STX Entertainment. Last August, TPG purchased overbuilder RCN and Grande Communications in a deal valued at $2.25 billion. In May it agreed to buy Wave Broadband for $2.36 billion.
The Vice Media investment is for an undisclosed minority stake and will help the media company launch and finance Vice Studios to produce scripted multi-screen programming to complement its library of news, documentary and reality programming. The media brand also hopes to use the money to build out its next generation of products and revenue streams, including OTT and direct-to-consumer offerings.