Pursuing Millennials and Sub Business Axel Springer buys Business Insider at a US $390 million value

What: German media company Axel Springer will acquire Business Insider in a US $343 million deal. The  deal that values the publisher at US $390 million.
Why it matters: The viability and investment proposition of major online media destinations is often up to debate, but this deal values an online publisher at a relatively high amount of money.  Springer is tempted by the potential of subscription revenues at Business Insiders and, more importantly, by Business Insider's substantial Millennial audience. (Only last week Hearst, with a similar rationale, bought a stake in Complex Media. )

49d30ca2c65ab24f3141d602bc3770f0_400x400 vWU0l_9n_400x400German media company Axel Springer will acquire Business Insider (BI) in a US$343 million deal that values the publisher at US$390 million. Last January, the company bought 9% of BI.

The deal will allow German Axel Springer to branch out globally.

According to Axel Springer sources, the deal was made for strategic reasons. Strategic in the sense that the deal will allow Axel Springer to branch out globally, add English-language offerings and get a better foothold in digital. It also makes it the world's sixth-largest publisher in terms of reach.

Business Insider’s acquisition is only the latest in a series of investments and acquisitions of digital pure plays by larger media companies. NBC Universal made a US$200 million investment in Vox and a US$200 million bet on BuzzFeed, A&E Networks bought a US$250 million stake in Vice. Elite Daily was sold for US$50 million to the Daily Mail earlier this year, and Scripps Networks Interactive led a US$50 million investment in Refinery29.

Business Insider has seven different editions of the website: one in the US, one in the UK and five in Asia. Axel Springer will add a German edition in Q4 of this year.


Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
El equipo editorial de Portada se apasiona por elaborar contenidos de alta calidad. La credibilidad es nuestro mayor activo. La misión de Portada es ayudar a profesionales de negocios y medios a comprender y alcanzar a consumidores latinoamericanos, del mercado hispano de EE UU y España.

MORE FROM PORTADA

¡Suscríbete a los boletines de marketing deportivo, video, marketing turístico e innovación!

Portada está expandiendo de manera significativa su cobertura en las aéreas descritas abajo. Asegúrate de obtener noticias frescas y la inteligencia que elabora el equipo editorial de Portada. ¡Por favor, tilda los tema(s) de los que quieras recibir información!


NewsWhip Raise $6.4 million from Tribal Ventures, AP and Cantor Fitzgerald

NewsWhip Raise $6.4 million from Tribal Ventures, AP and Cantor Fitzgerald

Content analytics firm NewsWhip has raised a US$6.4 million Series A funding round led by Tribal Ventures, with participation by The Associated Press, clients of Cantor Fitzgerald, The Asahi Shimbun and existing investors.Series A Funding Round Will Be Used to Develop the Company’s Data-Driven Storytelling Technology for Leading Newsrooms and Agencies.