LBG Media (LSE:LBG) has agreed to acquire a 75% stake in Uncovered Holdings, a London-based social-first creative agency widely recognised as a leading TikTok partner in Europe. The transaction values the initial acquisition at £26.8 million, with a further earnout of up to £7 million available based on performance targets. The agreement also includes options for LBG Media to acquire the remaining 25% stake at a later date, subject to future EBITDA performance.
Uncovered generated revenue of £10.2 million and adjusted EBITDA of £2.7 million during 2025 and is expected to deliver further growth in 2026. The agency will continue to operate independently while contributing additional revenue streams, earnings growth and specialist expertise in short-form, data-driven social content. The acquisition strengthens LBG Media’s creative capabilities and enhances its ability to deliver integrated campaigns for major brand partners.
The transaction forms a key part of LBG Media’s strategy to increase the proportion of direct and recurring client revenues, reducing dependence on more variable platform-based income. To support the acquisition and provide flexibility for future deals, the company has secured a new debt facility of up to £50 million with HSBC. Approximately £17 million has been drawn from the facility, alongside around £10 million of existing cash resources. Management believes the acquisition will improve the group’s revenue mix, earnings profile and long-term growth potential.
The company’s outlook continues to be supported by strong financial stability, including relatively low leverage and a solid equity position, alongside an attractive valuation reflected in a low price-to-earnings ratio. These strengths are partly offset by weak technical indicators, with the shares remaining in a clear downtrend and momentum measures staying negative. Concerns around business volatility, including a sharp decline in revenue during 2025 and softer free cash flow trends, also weigh on the overall assessment.
More About LBG Media plc
LBG Media plc is a social entertainment and digital publishing group focused on connecting brands with Gen Z and young adult audiences through social-first content. The company operates a portfolio of media brands across major social platforms, including Facebook, Instagram, Snapchat and X, helping advertisers engage consumers through targeted digital campaigns.
The group continues to expand its international presence and has established operations and commercial relationships in the United States through its Betches brand. LBG Media’s strategy centres on combining audience reach, creative content production and data-driven marketing solutions to deliver scalable growth across global markets.
Leave a Reply