“This is great for Axios, for our shareholders, and for the American press,” said Jim VandeHei, co-founder and CEO of the media company.
Patrick T. Fallon / AFP via Getty Images
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Patrick T. Fallon / AFP via Getty Images
“This is great for Axios, for our shareholders, and for the American press,” said Jim VandeHei, co-founder and CEO of the media company.
Patrick T. Fallon / AFP via Getty Images
Less than six years after launching its news site, Axios has struck a deal with Cox Enterprises worth about $525 million, the two companies announced on Monday.
The deal promises to combine two distinctly different businesses. Axios, the Arlington, Va.-based startup, is best known for its succinct, pointy stories. Cox is a family owned corporation based in Atlanta that owns Autotrader, Kelley Blue Book and Atlanta Journal-Constitutiontogether with large enterprises in the field of broadband and other fields.
Executives say local news will be their highlight
The leaders of the two companies say they are united by a common goal: to promote local journalism, at a time when the Internet has been a waste of news for news outlets across America.
“We found our good spirits to create a great, trustworthy media company that could outlast them all,” said Jim VandeHei, CEO and co-founder of Axios. ta. Posted by Cox. “Our shared ambition must be clear: to spread credible, nonpartisan, clinical journalism to as many cities and topics as possible.”
“Local watchdog journalism is vital to the health of any community, and no one is more focused on building that out nationally than Axios,” said President and CEO. Cox, Alex Taylor, said in a separate announcement. Posted by Axios.
The acquisition comes a year after another takeover was rumored
Axios – whose name means “worthy” in Greek – was founded by VandeHei, Mike Allen and Roy Schwartz after the trio left the Politico website. The site has been the subject of rumors of a spring 2021 takeover, but its reported petitioner, German media giant Axel Springer, bought Politico to replace.
Cox Enterprises has invested in Axios, which it said was a key investor in self-reported $55 million in funding rounds. The site noted on Monday that the Axios threshold has plenty of cash on hand, “because it’s always turned profitable.”
Sales can be a boon for Axios workers: the site has stated before that “EVERY employee is an owner” of the company.
The price for Axios is more than 5 times 100 million dollars in revenue it is expected to be reported to achieve this year.
The acquisition comes as Axios rolls out three local newsletters this month, in San Francisco, Houston and Miami. Company said in july that its Axios Local newsletters have “passed the 1 million subscriber mark in 24 markets.”
Company newsletters include supposed to explain more than 50% of its sales in recent years.
Axios founders will remain on its board of directors
Under the terms of the deal, the two companies will share seats on Axios’ seven-person board, with Cox taking four and VandeHei, Allen and Schwartz occupying the remaining three, according to Axios.
“This is great for Axios, to our shareholders and the American press,” VandeHei said.
Axios also reported that the deal calls for Cox to invest $25 million to strengthen Axios’ media operations. The purchase does not include Axios HQ, a software joint venture that will turn into its own company, working with the group’s communications divisions.
