In a media industry often defined by churn, contraction, and click-chasing, Valnet has been writing a different story – one defined by methodical expansion, editorial investment, and legal precision. Yury Smagorinsky, general counsel and vice president of legal affairs at Valnet, sits at the center of that machine. Speaking to Lexpert, Smagorinsky laid out the mechanics behind Valnet’s latest high-profile acquisition and its recent significant legal win in the United States.
Valnet's acquisition of Polygon, a storied gaming publication formerly owned by Vox Media, marks another calculated move in the company’s aggressive growth strategy. Smagorinsky doesn't equivocate on the rationale. “Valnet is a very acquisitive company...it’s in our DNA and we're always looking to expand and grow our business with key strategic acquisitions,” he says. Polygon, with its distinct voice and entrenched audience, “would complement our already robust portfolio of gaming brands quite well,” he explains, adding that Valnet believes it can “take it to the next level.”
That ambition is backed up by experience. Valnet has closed 15 digital media acquisitions over the past four years, with much of the legal heavy lifting done internally. Smagorinsky says, “We handled the Polygon acquisition from A to Z…whether it's the due diligence…drafting and negotiating the asset purchase agreement…[or] the other documents related to the transaction.”
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But if the process seemed seamless, that doesn’t mean it was without friction. This wasn’t a typical deal, Smagorinsky notes. “In our typical acquisitions…they don’t tend to be carve outs the way this is…Vox still remains in business.” That brought new challenges around decoupling shared services and untangling embedded contracts. Still, the team pushed through.
“It’s what we call our bread-and-butter acquisitions,” Smagorinsky says, referring to Valnet’s prowess as an acquirer of premier digital publications. Yet beneath the confidence is a deeper operational insight: the efficiency of Valnet’s legal function isn’t just a matter of technical competence – it’s a strategic advantage. “Having an in-house team that’s deeply involved in the M&A process…pays dividends,” he says. “We know our business very well and we collaborate closely with our M&A team. Being intimately familiar with our company risk profile allows us to focus on what is really crucial.”
That internal expertise has also allowed Valnet to turn deals around in six to eight weeks – lightning-fast in the world of M&A. “There are very few roadblocks…we handle it in-house…and we learn from one transaction to the other,” Smagorinsky says. “So it really allows us to build…on our prior experiences.”
Valnet’s legal team doesn’t operate in silos. While Smagorinsky leads the M&A work, he’s quick to point out that they aren’t “segregated into a pure M&A team.” Instead, lawyers at Valnet work across employment, intellectual property, compliance, and media law. “I strongly believe in attorneys having some diversity…in their day-to-day work,” he explains. “When you're dealing with acquisitions, you're dealing with a little bit of everything so it helps immensely to have that cross-functional experience.”
That multidimensional capability was crucial during the McGucken litigation, a copyright case in which Valnet was directly involved. The case tested the legality of embedding social media images under the so-called “server test.” For digital publishers, the implications were profound. “They tried to appeal it, and again the decision was confirmed, and then ultimately tried to get leave to appeal to the Supreme Court of the United States, and that was denied,” Smagorinsky says. “We believe it's an important victory not just for us…but also beyond for our industry.”
Tech giants like Google and Pinterest filed amicus briefs supporting Valnet’s position. The case’s outcome reaffirmed what Smagorinsky calls “just a common sense position.” He explains, “[The courts] are looking at what the technology does…what is copyright, and they're applying the law correctly.” For Valnet, the Supreme Court’s refusal to hear the case sealed the win and solidified legal ground for media companies across the US.
Still, even with a seasoned legal team and wins behind them, Smagorinsky isn’t complacent. When it comes to managing the legal department, technology is top of mind – but not in isolation. “Technology is certainly important…[but] it’s not just about technology,” he says. Valnet already has a modern contract management platform and other legal software, but Smagorinsky is always evaluating the landscape. “Legal tech is not yet an industry that’s consolidated,” he says. “There many options out there…[and] it’s not always easy to decipher what separates one from the other, so you really need to evaluate each tool carefully and benchmark it continuously against others.”
Ultimately, he believes in strong internal structure first. “I believe in tracking everything we do…I believe in…robust internal policies and procedures,” Smagorinsky says. These tools and good practices, not just tech and platforms, help reduce legal risk, keep operations efficient and ensure accountability across teams.
Smagorinsky’s own journey to in-house leadership offers lessons for legal professionals considering a similar move. His advice? “If you're thinking that it could be a good choice for you…do it,” he says. “The vast majority of people I know…who made the decision to go in-house have been quite happy with it. Trust your instinct.”
For Smagorinsky, the appeal is variety and impact. “In any given day, I will be jumping…from M&A to IP, to disputes, to…employment, HR issues…compliance, to branding, to press releases…you name it,” he says. That range, paired with the ability to “be part of something greater,” is what makes the role fulfilling.
The growth of Valnet’s legal department is both a reflection and an enabler of the company’s broader ambitions. “We’ve gone from…one person to now we just added our sixth team member, who will be based in our newly-opened New York office,” he says. “We’re becoming a more mature organization…we’re operating in different jurisdictions…our risk tolerance is evolving, and so we are growing to meet those needs.”
For legal departments charting their own growth, Smagorinsky offers a clear ethos: support the business by being proactive. “Try to anticipate…what’s coming,” he says. “If you can anticipate it a little bit, you can provide tremendous value.”