Discussions are in early stages according to The Wall Street Journal, but The Athletic and Axios are discussing a merger. The news websites cover to very different worlds and combining their assets and offerings could create a package that is more attractive for investors.
Alex Mather, chief executive of the Athletic, initiated the conversation, according to The Journal’s Benjamin Mullin. He approached Axios CEO Jim VandeHei last week to propose the merger. Mullin also notes that this is not the first time the two have had business talks. During the Covid-19 pandemic, Mather and VandeHei “held general conversations about business opportunities” with “the talks escalated significantly in recent days”.
Axios’s political coverage and The Athletic’s sports content are said to be being packaged in a blank check firm that then would go public. Funds raised through an IPO would allow both brands to expand their content offerings.
“The longterm plan is to bring additional digital publishers into the fold, especially those with content consumers are willing to pay for and can earn a premium from advertisers,” Mullin writes, citing sources familiar with the plans and discussions.
Mullin did not learn financial terms of a potential merger. He did note that negotiations could “fall apart”.
