Article Author:
Associated Press
Associated Press
New York (AP) — Marriage of old and new media: Axios Media, a digital news site known for breaking news on politics, technology and business, will be acquired by Cox Enterprises, a media conglomerate that owns the Atlanta Journal-Constitution, Kelley Blue Book and leading broadband. Internet service.
Cox said on Monday that while pushing his online news provider into new markets, he expanded coverage to "more cities, more national topics and more professional coverage." Premium plans to cover his niche.
Axios reported that the deal was worth his $525 million, citing sources. In an article about the deal, Axios used its trademark "why it matters" section to explain both companies' motivations behind the acquisition.
"The deal is structured to ensure that investments continue to flow into the local news at a time when most commercial investors have abandoned their local markets," the article said. Axios added that it has launched a "massive expansion" into local news.
Many digital-first media companies are in financial trouble. Buzzfeed, which went public in late 2021, has made acquisition offers to prominent news staff from its research, inequality, politics and science teams. This is because they focus on big breaking news and lighthearted content to make money. Meanwhile, Vox Media recently laid off 39 people, according to multiple media reports.
Privately held Cox made its first investment in Axios last year. Axios co-founders and former Politico reporters Jim VandeHei, Mike Allen, and Roy Schwartz will continue to own shares in the company and lead editorial and day-to-day business decisions.
His Axios HQ, the Axios communications software business, will become an independent company majority-owned by the founders, with Cox as the only minority shareholder. VandeHei becomes Chairman and Roy Schwartz becomes his CEO.
His Virginia-based Axios was founded in 2017 and is known for his short, bulleted stories. The company also publishes daily and weekly newsletters targeted at specific industries.
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