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?

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