Axel Springer, an European publishing house has announced on Wednesday its acquisition of business news outlet Business Insider for $343 million. The company already owned 9% of Business Insider and now agreed to buy another 88%. Amazon’s founder Jeff Bezos’ investment firm retains the remaining 3%.
New York City-Based Business Insider has an audience of 78 million unique readers every month. Now with the acquisition, Axel Springer will be able to boost its reader base to around 200 million worldwide, making it one of the six largest publisher on the planet.
Considering the 100% of Business Insider, its purchase value comes to $442 on the basis of a cash and debt-free valuation of $390. For the acquisition of 88%, the Axel Springer is paying $343 million.
Mathias Döpfner, CEO of Axel Springer SE said “the acquisition would allow it to continue with our strategy to expand Axel Springer’s digital reach and, as previously announced, invest in digital journalism companies in English-speaking regions of the world”.
Henry Blodget, founder, CEO and editor-in-chief, and Julie Hansen, chief operating officer and president, will continue to lead Business Insider in their respective roles. Recently, Business Insider has expanded internationally by launching editions in the United Kingdom, Australia, India, Indonesia, Singapore and Malaysia. It also has intends to expand its coverage through topic-oriented sites. Few months ago, it unveiled Tech Insider, a technology news site. It also sells a subscription-based research and information service known as BI Intelligence.