• by Larissa Faw , July 9, 2015

Zealot Networks continues to build up its portfolio of media platforms and ad-marketing firms with the acquisition today of social media publisher ViralNova for around $100 million.

The deal provides Zealot - which has aspirations to be a major holding company - with a digital publishing platform, proprietary underlying technology and significant audience for which it will create original programming.

ViralNova averages 100 million monthly visits and has a large social following, including more than three million fans on Facebook. The company works closely with brands, agencies, and media partners to continuously develop content and advertising offerings.

Meanwhile, the acquisition underscores the strategy of Zealot's founder Danny Zappin, whose last company Maker Studios was acquired by Disney for $950 million. Similar to Disney, Omnicom, or Publicis, Zealot is building a next generation marketing-media brand through acquisitions to offer complete end-to-end solutions. Since the company's launch in August 2014, Zealot has acquired creative shop Neighbor Agency, digital agency Threshold Interactive, and digital branded content shop Idea Farmer, among others.

The deal also allows Zealot's portfolio companies to leverage ViralNova’s proprietary technology that enables users to create different types of publishing content quickly, including video, listicle and long-form content. The platform also provides content discovery and trend identification services.

ViralNova's acquisition was sparked through Facebook. A few months ago, one of Zealot Networks’ founders noticed a few of the stories he was reading on Facebook came from ViralNova, say executives familiar with the situation. Interest piqued, Zealot Networks reached out directly to ViralNova to discuss an acquisition. It quickly became clear that ViralNova would be a good catalyst to fuel Zealot’s audience network, and in turn, Zealot would be able to provide scale to help ViralNova reach its full potential, executives said.

Originally launched in 2013, ViralNova is expected to generate $35 million in revenue in 2015.  “This move is driven by a shared vision of what it takes to grow a powerful organization in the digital publishing space with strong benefits for both companies moving forward,” said ViralNova CEO Sean Beckner. “ViralNova is a proven entity on multiple fronts – delivering quality content, a dedicated community and innovative technology. Zealot receives a top-tier publisher and the technological foundation necessary to empower its portfolio of companies, and we can increase our already rapid rate of growth and bring added value for ViralNova partners.”

Beckner will now report to Zappin, President and CEO of Zealot Networks. The 24-staff ViralNova will continue to operate under its own name and will remain in New York. Plans call for expanding staff and opening a San Francisco office.