Despite a reported turnover of over £500,000 the Gay Star News brand and IP have been bought by a company for £33,000.
Last year Gay Star News, now rebranded to GSN went into administration and apparently, according to its financial records owed its creditors tens of thousands of pounds and left at least 20 journalists out of work.
The shuttering was so swift and unexpected a crowdfunder was set up to help pay for the staff’s wages.
Gay Star News, which has now dropped the word “gay” from its title and is stylised as GSN was acquired by Iconic Labs PLC – a marketing company.
According to statements put out by Iconic Labs, the company bought GSN to “build critical mass and in particular expand its proprietary targeted distribution channels that can be utilised under the Iconic Labs brand offering”.
“Received significant interest in branded content partnership”
It has also “received significant interest in branded content partnerships for GSN but the new operational website is a necessary next step to activating these contracts and increasing the platforms revenue potential”.
Indeed, it went on to explain, “with the proven capability to generate in excess of £500,000 a year in revenue for £33,000, represents exceptional value for Iconic Labs”.
This also means that GSN, one of the UK’s leading LGBT+ publishers is no longer LGBT+ owned.
Chief Executive Officer, John Quinlan, said: “We are delighted to relaunch GSN. The ability of GSN to already get over 1 million users a month gives an indicator of its revenue potential but also of the capital value of the brand. We are very confident in building on this strong start and excited at the potential we are seeing in the sales pipeline.”
Chief Business Officer, Liam Harrington, said: “We are excited to relaunch GSN. The fact that the website is already getting 1 million users a month is a testament to the strength of the brand and the community.”