Social media firm to merge with online retailer
A social media firm based in Manchester has merged with a German retailer making the two founders multimillionaires.
Social Chain has merged with Lumaland which sells own-brand products such as beanbags and mattresses.
Lumaland is owned by Georg Kofler, the founder of German media companies ProSieben and Premiere.
Steve Bartlett and his co-founder Dominic McGregor who are both in their 20s have become multimillionaires as a result of the deal.
Dominic McGregor
The merged business will now market Lumaland and other products through its social media channels.
The newly formed business will have its head office in Berlin and will be listed on the Xetra electronic exchange and the Düsseldorf stock exchange.
The new business is valued at €186m or £160m.
Steve Bartlett
Steve Bartlett said the social marketing market is undergoing major change after reaching saturation point.
Steve Bartlett said: “We will own the end-to-end process of creating a brand and scaling a brand.
“Lumaland gives us the infrastructure and logistics to store and deliver products”.
The company will continue to work with Amazon, Apple Music and retailer Boohoo.com.
The firm has around 500 staff and will keep its offices in central Manchester – which were used as a backdrop in the TV drama Cold Feet.
The new firm will be jointly managed by Steve Bartlett, his co-founder Holger Hansen and Wanja Oberhof, the chief executive of Lumaland.
Mr Oberhof said: “Social media brands are a brand, a community, a medium and a product all in one.
“As a result, social media brands can be developed in line with demand, produced faster and marketed more efficiently than conventional brands and products.”
