Axel Springer in Talks to Buy Axios
22 May 2021 - 4:12AM
Dow Jones News
By Benjamin Mullin
German publishing conglomerate Axel Springer SE is in talks to
purchase digital-news outlet Axios, according to people familiar
with the matter, a deal that would add to the company's U.S.
holdings.
Axios is seeking between $400 million and $450 million in a
potential sale, according to a person familiar with a presentation
to the company's investors. There is no guarantee that Axios would
receive that valuation in any eventual deal. Deal talks aren't
final and could still fall through, one of the people said, but
they have gained momentum in recent weeks.
The Information earlier reported on the acquisition talks.
The media sector has been consolidating rapidly in recent months
as rivals explore mergers to grow their audiences and gain
additional leverage with advertisers and distributors. This week,
AT&T Inc. and Discovery Inc. said they were merging their
content assets, which include streaming services HBO Max and
Discovery+.
Smaller companies, including Vice Media Group and BuzzFeed Inc.,
are each considering going public through special-purpose
acquisition companies, or SPACs. Executives connected to Group Nine
Media Inc., in which Axel Springer is also an investor, have
launched a SPAC that aims to consolidate the digital-media sector
further.
Axios, known for its scoop-laden newsletters and terse reporting
style, covers subjects including politics, media, technology and
finance. The company, which was previously in talks to merge with
sports-focused outlet the Athletic before those discussions halted,
generated more than $60 million of revenue last year and was
profitable.
Axel Springer, which owns the German newspapers Bild and Die
Welt, has been adding to its U.S. media holdings in recent years.
The company purchased Business Insider in 2015 for about $500
million and recently bought Morning Brew, a digital publisher that
has focused largely on business.
Write to Benjamin Mullin at Benjamin.Mullin@wsj.com
(END) Dow Jones Newswires
May 21, 2021 13:57 ET (17:57 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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