The satirical news website, The Daily Mash, has been acquired by the owner of Entertainment Daily in a £1.2 million deal.
Digitalbox Publishing is buying the online firm from its journalist founders Neil Rafferty and Paul Stokes in a cash and shares deal.
The Daily Mash makes money from advertising revenue and generated sales of £396,000 and a profit before tax of £135,000 last year.
It also has a TV offshoot, The Mash Report, which airs on BBC2.
Mr Rafferty said: “This is a great opportunity for the Mash to build on what we have created so far.
“My co-founder, Paul Stokes, did an incredible job building a profitable business from the ground up.
“Being part of Digitalbox and accessing their commercial and technical expertise, means we can keep building, while our fantastic team of writers continue to produce great content every day.”
The deal has been structured through a company called Polemos and will see Digitalbox float on AIM, London’s junior market, later this month.
On flotation, Digitalbox will be worth between £12 million to £13 million.
James Carter, Digitalbox chief executive, said: “Our proposed admission to AIM will allow us to realise our ambition to create a market-leading, mobile-first digital media business through a buy and build strategy.
“Through our success with Entertainment Daily, we have a platform through which we can drive traffic and advertising revenue. The platform is scalable and we intend to add new titles to it.”