Author: Geoffrey Page
Cox Enterprise has prepared to acquire Axios for a deal worth $525 million in cash. This deal may excite investors and spur some life into the journalism industry.
In this article, we’ll be covering the details available on the Axios purchase deal. So keep reading.
Axios Agrees to Sell to Cox for $525 Million in Cash
Within the first six years of launching, Axios has agreed to sell itself to Cox Enterprise for a deal worth $525 million. The deal was announced last Monday.
Analysts say this deal is a merger of two distinct businesses. Axios is popular for its specific style of delivering written content, as they favor a condensed style with bullet points.
On the other hand, Cox Enterprise is a conglomerate that owns The Atlanta Journal-Constitution, Autotrader, and Kelley Blue Book, as well as owning enterprises in broadband and a few other areas.
Local News Will Be The Emphasis – Says Executive
According to both companies, they share a united goal of boosting local journalism, which is important in a period where the internet doesn’t seem to find news outlets relevant.
Instead, the masses have turned to major social media outlets for daily news.
However, Axios is still surviving supposedly due to the trust the company has earned from striving to spread nonpartisan, clinical, and trusted journalism on as many topics as possible.
Alex Springer (Cox CEO and chairman).says that Axios is the most focused on local watchdog journalism, which is essential to building a healthy community.
The Axios acquisition comes one year after there was a rumor of a different takeover
By June 2021, there were reports that Axios was subject to acquisition by Alex Springer. However, the German media giant decided to buy politico instead.
At the moment, Cox Enterprise is ready to purchase Axios for $500 million, which is five times more than its projected yearly revenue for 2022.
Before the acquisition was announced, Cox Enterprise had previously invested in one of Axios’s fundraising rounds where the company self-reportedly raised $55 million.
Speculators say that the deal may offend Axios workers, as the company previously stated that every Axios employee owns a part of the company.
The purchase deal comes in the same month Axios launched local newsletters in Houston, San Francisco, and Miami.
According to Axios, its local newsletters have over 1 million subscribers from 24 markets.
Also, Axios’s newsletters are projected to make up over 50% of the company’s revenue within previous years.
The Company’s Founders will remain on its board
According to the deal, both companies will share the seats on Axios’ seven-seat board. Cox will get four seats, while the rest will go to Allen, Schwartz, and VandeHei.
In other news, Axios reports that their deal requests Cox Enterprise to invest $25 million for the sake of bolstering Axios’s media operations. But it should be noted that the purchase doesn’t include Axios HQ, which is a separate software venture that will work with the corporation’s communication department.
Both companies have confirmed the deal, but further details are yet to be disclosed. Investors see potential in this deal as both companies seem determined to bolster local journalism despite the steady shift away from traditional news outlets.