Germany-based media house, Axel Springer has announced to acquire a majority (88%) stake in New York-based Business Insider. Springer already holds approximately 9% stake in the company and, after this purchase, will hold a stake of 97%.
According to press note, the purchase price based on 100% of Business Insider amounts to $442 Mn (currently approximately EUR 395 Mn) on the basis of a cash and debt free valuation of $390 Mn (currently approximately EUR 348 Mn). The valuation corresponds to an amount of $343 Mn (currently approximately EUR 306 Mn) for the 88 percent of the shares that Axel Springer is acquiring.
According to Crunchbase, since its its launch in 2007, Business Insider has raised over $55.6M in 7 rounds of funding. Bezos Expeditions, the personal investment company of Jeff Bezos holds 3% share in the company which he will continue to hold.
Started Henry Blodget, Kevin Ryan and Dwight Merriman, the publication targets 18 to 34-year-olds. Apart from news and exclusive reports, it also offers a subscription-based research reports branded as BI Intelligence.
Business Insider reaches over 78 Mn unique visitors each month. Once through, this deal will take Springer’s total reader base to 200 Mn. The acquisition also puts Axel in the list of ‘six largest publishing houses’ in the world.
Post the acquisition, Henry Blodget, founder, CEO and Editor-in-Chief and Julie Hansen, COO and President at Business Insider will continue in their respective roles. There will be additional appointment on board of the company, which will now include Kenneth Lerer, managing partner at Lerer Hippeau Ventures, an early-stage technology venture capital firm, co-Founder of Huffington Post and Chairman of Buzzfeed, will receive a seat on the Board of Business Insider.