Axios, the digital news organization co-founded by Mike Allen, Jim VandeHei, and Roy Schwartz, has been acquired by Cox Enterprises for $525 million. This cash deal includes an additional $25 million investment in Axios' media arm to expand local, national, and subscription news offerings. The acquisition aims to preserve and expand local news coverage.
Axios, established in 2016, focuses on politics, technology, and business news. Its strategy includes delivering concise news to professionals through newsletters and expanding into local news markets, currently operating in 24 cities with plans for 30 by the end of 2022 and eventual expansion to hundreds. Revenue streams include brand awareness advertising, a professional subscription service (Axios Pro), and the software arm, Axios HQ.
Cox Enterprises, a multigenerational family-owned business with roots in local newspapers, sees this acquisition as a way to ensure the continuation of local news in the digital age. Cox chairman and CEO Alex Taylor emphasized the importance of local journalism to community health.
Axios' software arm, Axios HQ, will become an independent company led by Roy Schwartz. Axios HQ serves over 300 clients and projects significant growth.
Cox will control the Axios media arm's board, while Axios co-founders will remain on the board. Axios' management retains control of editorial direction and day-to-day operations. The deal is designed to incentivize employee retention. The transaction is expected to close in a few weeks, pending regulatory approval.
The $525 million valuation places Axios among a small number of digital news startups to achieve such a high sale price in recent years. This acquisition highlights the continued value of robust, credible news organizations.