Virtual Legality #47 – Gizmodo Group Sold! What is “Private Equity” Anyway?

With the sale of the Gizmodo Group, some of the Internet’s favorite “blog-style” journalistic hot spots are now in the hands of a little known private equity firm. But if the firm itself is little known, what the sale actually means (or could mean) is even less understood.

What is “private equity”? How does it work? How are funds formed? And how does corporate law and tax regulation inform their creation?

What does this mean for Kotaku, Gizmodo, Jezebel, Deadspin, The Onion, and the rest of the acquisition group?

And why might it not be the doom that some fear, when other private equity targets (such as Toys R Us) fell to bankruptcy shortly after their acquisition?

Discussed in this episode:

“Gizmodo Media Group is sold to a private equity firm, and Univision is out of the English-language website business”
NiemanLab – April 8, 2019

“Anytime I see a private equity firm sink their teeth into a company I worry…”
Twitter Thread – April 8, 2019 – Mike Futter

“The Demise of Toys ‘R’ Us Is a Warning”
The Atlantic – July/August 2018

“Heard price was [less than] $50mm.”
Twitter Thread – April 8, 2019 – Peter Kafka

“Private Equity”
Investopedia Entry – Updated March 13, 2019

“About Us”
Great Hill Partners Website


Spotify: (



Google Play Music:

“Virtual Legality” is a continuing series discussing the law, video games, software, and everything digital, hosted by Richard Hoeg, of the Hoeg Law Business Law Firm (Hoeg Law).

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s