StackCommerce Acquired by TPG's Integrated Media Company

StackCommerce Acquired by Integrated Media Company

StackCommerce, a commerce and content platform headquartered in Los Angeles, has been acquired by Integrated Media Company. This holding company was established by the private equity firm TPG specifically for the purpose of acquiring businesses in the new media sector.

Platform Performance and Revenue Model

StackCommerce’s affiliate purchasing platform has facilitated over $175 million in transactions directly with merchants. Publishers utilizing the platform can achieve commission rates ranging from 15% to 20% of gross revenue, a significant increase compared to the typical 5% offered by standard affiliate marketing sites.

The company operates on a revenue-sharing model, retaining 30% to 40% of each transaction, as indicated by sources familiar with its operations.

Integration with Existing Media Properties

Following the acquisition, StackCommerce will be integrated alongside other properties within the Integrated Media portfolio, such as Fandom and Goal.com. The substantial financial backing of TPG positions the combined entity to potentially acquire and monetize additional media companies.

This strategy leverages StackCommerce’s established sales engine to enhance revenue generation across Integrated Media’s holdings.

TPG’s Perspective on the Acquisition

Andy Doyle, Operations Director at TPG, commented on the acquisition, stating, “Josh and the team at Stack have constructed a substantial and impactful company within the e-commerce landscape, achieving this with minimal external funding.”

He further added, “We are still witnessing the early phases of market development and are pleased to collaborate with a team possessing such profound expertise in both commerce and technology. We anticipate supporting Stack’s continued expansion as it serves a growing number of publishers and influencers, while simultaneously improving the shopping experience for audiences.”

Growth and Financial Highlights

StackCommerce experienced significant growth after securing $1 million in funding from Amplify, a Los Angeles-based accelerator and incubator, along with contributions from angel investors. This investment propelled the company to a workforce of approximately 90 employees and generated $80 million in revenue by 2020, according to informed sources.

Extensive Publisher and Brand Partnerships

The company has established partnerships with over 1,000 publishers and 5,000 brands. These include prominent names such as CNN, CNET, Verizon Media, Hearst, Mashable, NY Post, TMZ, and MarketWatch.

Founder’s Vision and Future Outlook

Josh Payne, founder and CEO of StackCommerce, stated, “Nearly a decade ago, we founded StackCommerce with the goal of redefining affiliate commerce for publishers, empowering them with complete control over customer data and the user experience.”

He continued, “We have consistently pioneered the commerce and content space, assisting publishers in developing and scaling new revenue streams, alongside providing access to content creation services and user acquisition strategies. This acquisition marks a pivotal moment not only for StackCommerce but also for the future of shoppable content.”

Payne believes TPG’s media expertise will foster further investment in StackCommerce’s commerce tools and services, ultimately benefiting its partners.

Advisory and Legal Representation

StackCommerce received financial advisory services from CG Petsky Prunier, a division of Canaccord Genuity Group. Legal counsel was provided by Cooley LLP throughout the acquisition process.