The American digital media Axios accepted the offer to buy the conglomerate Cox Enterprises for about 525 million dollars, as announced by both companies on Monday.
Cox Enterprises, which until now was one of the main investors in Axios, already owns other publications in the country and aims to strengthen local journalism in the digital age, the note indicates.
Axios was created in 2016 by the founders of another outlet, Politico, and focuses on topics in politics, business, and technology using a straightforward writing style that often spreads information out in lists.
The sale agreement was signed on Sunday and includes an investment of 25 million for the expansion of local, national and subscription information products of Axios.
It also involves the separation of Axios’ “software” arm, Axios HQ, although the media company will still have control of its board of directors and Cox will get a seat.
“A large part of this investment is to expand the number of local markets we serve,” said Cox Chief Executive Officer Alex Taylor, who stressed the importance of vigilant journalism for the health of communities.
“This is great for Axios, for our shareholders and for American journalism,” added Axios CEO Jim VandeHei, calling Cox a “like-minded partner.”
In 2020, Axios has pivoted to local journalism and plans to cover 30 US cities by the end of this year through its Axios Local initiative, which employs 75 of its 500 employees.
According to the note, the digital medium has raised some 55 million dollars and is profitable, with its main source of income in the advertising of large companies that it does in its newsletters, website and podcasts.
Axios previously unsuccessfully negotiated its sale with German media group Axel Springer, which last year bought Politico for more than $1 billion.