What? POLITICO publisher Robert Allbritton purchased online news publication Capital New York.
Why is it important: This operation may lead the path to a stronger development of digital media, as the Allbritton family recently sold its stable of TV stations to Sinclair Broadcast Group for almost $1 billion in order to invest and focus on such segment, as reported by Reuters.
Yesterday, political news website POLITICO announced, via a press release, that its publisher, Robert Allbritton, had purchased New York City-based online news publication Capital New York, also voicing upcoming plans to make a substantial financial investment to sharpen and grow the organization.
Capital was founded in 2010 by Josh Benson and Tom McGeveran, who left editor roles at The New York Observer to launch a publication aimed at a highly knowledgeable New York audience. They have run the company since its inception and will continue to run Capital day to day as co-editors.
“I have very big ambitions for Capital: to do in New York what we did in Washington with POLITICO,” Allbritton said. “I believe powerfully that nonpartisan publications with an intense focus on a specific set of topics can break though quickly, editorially and financially. I’m excited to take the impressive work Benson and McGeveran did with Capital to the next level.”
Capital will operate as a stand-alone company but draw heavily on POLITICO’s business team and industry knowledge, focusing on New York City and Albany, with an emphasis on its power centers. The business model will be similar to POLITICO’s: ads and subscriptions targeted at the most influential readers in the core subjects it will cover.
Executive Editor Jim VandeHei will run this project as president, while also continuing his primary role of charting the strategic direction of POLITICO.
Allbritton plans to invest heavily in journalists to cover New York’s most powerful leaders in media, culture, business and city and state politics, so the publication will hire more than two dozen people in the coming weeks. The existing site will continue to operate as is until Capital’s relaunch later this year.
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