In a recent M&A deal, Axios has decided to sell itself to Cox Enterprises for $525 million, according to CNBC.
What Happened: Sources, close to both companies, have revealed to CNBC that a deal has been made which will expand Cox’s global readership.
The plan will expand Cox’s digital news site coverage to include more cities that Axios previously covered, such as Austin, Seattle and Boston.
Axios was founded in 2017 and primarily focuses on covering politics and business news.
Axios co-founders Jim VandeHei, Mike Allen and Roy Schwartz will remain on the company’s board and continue to manage its day-to-day operations, while Cox CEO and Chairman Alex Taylor will join Axios’ board of directors.
Cox first expressed interest in Axios in the fall of 2021 and negotiations have ramped up since then.
When VandeHei was previously asked what he was looking for in an Axios buyer, he expressed the following sentiments: “We were looking for two things: a buyer that was authentically committed for the very long term to serious media, and someone who was fine with us being in control for a long time… That’s not because we’re arrogant, but because we have a clear mind about what a good journalism business looks like.”
In order to make the acquisition as smooth as possible, Axios never hired a banker and spoke only to Cox about the buyout instead of shopping around for other options. Now that the deal has been finalized, VandeHei calls the negotiation process “nice and easy.”
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