(Reuters) - Oreva Capital, the Los Angeles-based investment firm that recently bought marijuana enthusiast magazine “High Times,” has funded a management buyout of a handful of media brands catering to the gay community.
Oreva has backed a management-led buyout of Here Publishing, which owns such titles as “The Advocate” and “Out,” with plans to grow its online and events business, Oreva CEO Adam Levin told Reuters in an interview this week.
Levin, who is also CEO of High Times, declined to comment on how much Oreva paid to buy Here Publishing from its former owner, Here Media.
Oreva is buying Here Publishing, which it is rebranding “Pride Media Inc,” at a time when many print publishers are struggling with declining subscribers and advertising revenue.
However, Levin believes that by acquiring niche media with a passionate audience, like “High Times” which is expected to go public in the next few months, and now with Pride Media, there is an opportunity to grow revenue, he said.
“We are looking for brands that have strong emotional ties with a community,” he said. “We think there is a unique opportunity in niche media brands that are undervalued and have further ways to monetize the intellectual property.”
Oreva plans to grow Pride Inc’s events business so that it makes up 25 to 30 percent of the company’s revenue in the next 12 to 18 months, up from 5 percent currently, Levin said.
Similarly, the company expects to invest in its digital business and grow its total reach to 15 to 18 million monthly visitors, up from 12 million currently in the next 12 months, he said.
Reporting by Jessica Toonkel; Editing by James Dalgleish