Axios, a digital media startup that spans politics, technology and media, has agreed to acquire Cox Enterprises, a media, automotive and communications company.
The deal value for Axios Media was $ 525 million, according to a source familiar with the transaction and other reports. Cox Enterprises bought Axios stock last year.
Alex Taylor, President and CEO of Cox Enterprises, said, “Bringing a forward-thinking organization like Axios into Cox Enterprises is exciting for us on many levels and we look forward to helping it continue to grow and grow.”
Axios co-founders Jim Vandehey, Mike Allen and Roy Schwartz will continue to have stakes in the company and will continue to lead daily business and editorial decisions. Taylor will hold one of Cox-controlled four seats on the board, while three of Axios’ founders will remain, Axios said.
Vandehey said he “found our kindred spirit in creating a large, trustworthy and consistent media company that can support us all. Our shared ambition must be clear: to spread clinical, impartial and trustworthy journalism as quickly as possible. city and on as many topics as possible.
Axios started in January 2017 and has grown rapidly. A distinctive innovation was the “Smart Brevity” story structure, which highlights key points and quotes about the latest news and trends. Since 2020 Axios Local has been active in the cities of the country. They now cover 24 cities with another to be launched shortly.
Cox Enterprises will continue to independently manage existing media companies, including The Atlanta Journal-Constitution and Dayton Daily News.
Axios’ communications software business, Axios HQ, will become an independent majority company owned by Axios co-founders, with Cox the only minority investor. Vandehey will serve as chairman of the board and Schwartz will serve as chief executive.
Axios reports that the deal includes an additional $ 25 million investment to expand news facilities. There are more than 500 employees in the company.
The sale is the digital startup’s latest major media purchase. Last year, Axel Springer bought Politico for about $ 1 billion. Axios founders leave Politico in 2015 to start a new company.
Source: Deadline
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