Digitalbox PLC (AIM:DBOX) has agreed to buy the assets of The Life Network from Media Chain Group for £200,000 in a deal that will expand its social media reach and is expected to boost earnings.
The acquisition, which is subject to testing, will add 5.6 million Facebook followers and 357,000 Instagram followers to Digitalbox’s portfolio. The Life Network’s assets were paused in mid-2024 and posted a small loss of £400 last year.
Media Chain was previously part of Social Chain, a digital marketing and media business founded in Manchester in 2014. The group built a network of social media pages with a combined audience of over 60 million followers before being sold in two parts.
Digitalbox will pay £20,000 upfront as a non-refundable deposit to trigger a licence agreement, allowing it to test the assets until mid-June. If satisfied with the results, the company will pay the remaining £180,000 within three months.
The acquisition will be funded from Digitalbox’s existing cash reserves, which stood at £2.1 million at the end of 2024.
James Carter, CEO of Digitalbox, said the deal was an opportunity to extend the company’s audience, particularly in the US female market, where its Royal Insider site is already gaining traction.