Axios, an American news website founded in 2016 by former Politico journalists Jim VandeHei, has been acquired by Cox Enterprises for $525 million, according to Axios. The acquisition will allow Cox Enterprises to expand its coverage of its digital news site to include more cities.
Axios began a major expansion into local news in 2020. Axios Local currently operates in 24 cities. The company plans to expand its coverage to 30 U.S. cities by the end of 2022, and eventually to hundreds of cities.
Axios co-founders Jim VandeHei, Mike Allen and Roy Schwartz will remain on the company's board and will continue to manage its day-to- day operations as part of the deal, the companies said in a news release. The CEO and chairman of Cox Enterprises, Alex Taylor, will also join the Axios board.
Axios CEO Jim VandeHei said this is great for American journalism, our shareholders, and Axios. It allows us to think and operate with a like-minded partner, and build something great and durable that lives long after we are gone. A big part of the investment is to expand the number of local markets we serve. Local watchdog journalism is so important to the health of the community, and no one is more focused on building that out nationally than Axios, Cox chairman and CEO Alex Taylor said.
Axios will spin off its software arm, Axios HQ, into a separate stand-alone company led by Axios president Roy Schwartz. Since its inception six years ago, Axios has raised $55 million. As a company that has always been profitable, it has a lot of cash on hand to invest in the business.