Athletic co-founders Adam Hansmann and Alex Mather
Source: The Athletic
Digital sports publication The Athletic and the short news service Axios are considering the merger as part of a larger plan to set up digital media companies, according to people familiar with the matter.
The Wall Street Journal first reported on Friday. The negotiations are “extremely precocious,” said one of the people.
Athletic co-founders Alex Mather and Adam Hansmann spoke to CNBC last year after exceeding the 1 million subscriber mark. At the time, Mather praised Axios as a company looking for innovations it could bring to The Athletic.
“We look at a company like Axios – what are they doing really well?” Said Mather in the interview.
“How can we take what they’re doing and apply it to sports? If you’re a casual fan of politics, they simplify the experience. They give me the things I need and very little I don’t. There’s an amazing art to that. You you can’t just say ‘oh, just put it in the bullets!’ It’s eliminating clutter to get to what someone needs to know versus what depth is. We look at our business that way too. You can be a diehard fan and read all articles or you can be a casual fan. How can we make it casual? happy fan? How do we summarize the day in the NBA every day so that, if you’re a casual fan, you can keep up? “
The Wall Street Journal noted that the two companies will continue to operate separately, as stipulated in the initial merger negotiations. Still, Mather’s comments provide a window into the kind of stylistic and editorial choices that can reach The Athletic if Axios reporters and editors are called in for help.
A spokeswoman for The Athletic declined to comment on the merger negotiations, adding: “Axios has built an incredible business and we have had many conversations over the years.”
Likewise, Axios CEO Jim VandeHei noted that companies “have literally spoken for years about our shared passion for premium content businesses.” Axios also declined to comment on discussions about the merger.
Both Axios and The Athletic have venture capital sponsors who could monetize investments in digital media companies if they go public through a special purpose investment vehicle. Grupo Nove has publicly declared its desire to set up digital media companies through a SPAC. Buzzfeed held talks with 890 Fifth Avenue, a SPAC focused on media and telecommunications, according to Bloomberg. Other companies, including Bustle, Vox and Vice, also discussed the merger and IPO through a SPAC, CNBC reported earlier this year.
WATCH: Liberty Media forms SPAC with plans to list on Nasdaq.