Axios has signed a deal to sell to its most recent lead investor, Cox Enterprises, the companies announced Monday. The cash deal values the company at $525 million, according to sources familiar with the deal.
Axios was founded in 2016 by the same leaders who built Politico, with a focus on politics, tech and business. In 2020, it began a significant expansion into local news. Cox is a multigenerational, family-owned business that got its start in local newspapers. It wants to ensure local news remains a part of its legacy in the digital era.
The deal includes an additional new investment of $25 million in Axios' media arm to help the company expand across its local, national and subscription news products. Axios Local currently operates in 24 cities and plans to expand its coverage to 30 U.S. cities by the end of 2022. Eventually, it hopes to be in hundreds of cities.
Axios will spin off its software arm, Axios HQ, into a separate, stand-alone company led by Axios president Roy Schwartz.
The deal values Axios at $525 million, the sources said. It has been reported that Axios projects it will reach $100 million in revenue for 2022.
Axios' management will maintain control of the company's editorial direction and day-to-day operations. The deal is structured to incentivize Axios' management and current employees to stay with the outlet and continue growing its business. Axios HQ is being spun off with some seed capital and plans to raise money early next year to fuel its growth as an independent firm.
Cox chairman and CEO Alex Taylor
A big part of this investment is to expand the number of local markets we serve. Local watchdog journalism is so important to the health of any community, and no one is more focused on building that out nationally than Axios.
Axios CEO Jim VandeHei
This is great for Axios, for our shareholders and American journalism. It allows us to think and operate generationally, with a like-minded partner — and build something great and durable that lives long after we are gone.
