Investors concerned about Future’s ‘buy and build’ model, which has now taken over a price comparison website

Futrue Media’s share price has collapsed 16.7% as investors took fright over the £594m buyout of GoCo.

The takeover triggered £300m being wiped off the magazine publisher’s value as shareholders were rattled by the deal.

Future has snapped up 18 firms in the last six years, making it a publishing consolidator. 

But there is scepticism the ‘buy and build’ model can work, with Future buying fading media titles and giving them a digital overhaul. 

The capture of GoCo has also surprised the market, as it appeared unlikely a publishing consolidator would be the eventual buyer of GoCo. 

Matthew Earl, managing partner at hedge fund Shadowfall, said: ”The way the market has reacted, it seems as though investors are finally working out that Future’s growth is largely reliant on it acquiring bigger businesses.”

However, Future has argued it can create synergies with its large online audience and the price comparison site.

Future chief executive Zillah Byng-Thorne said: “Through the acquisition, we expect to create a leading offering for consumers, providing complementary insights that enable consumers to make informed choices in their passions, interests and key purchasing decisions.

”The transaction will bring together our depth of audience insight and reach with GoCo’s expertise in price comparison, underpinned by the proprietary technology of both groups.”