The New York Times is looking for more subscribers. The Athletic has many subscribers but loses money.
Then there is your explanation of the two sentences why The Times is paying $ 550 million for Athletic, a five-year sports media organization.
And now we can go deeper into the latest media integration. Remember that a few months ago, BuzzFeed bought a Complex, and Vox Media, which owns this page, acquired the Ninth Group. Like those agreements, this sounds like both sides, to the very end. But the Times-Athletic alliance also underscores the challenges that all companies face right now. You can call it a combination of chocolate-peanut butter, or you can call it a simple wedding. Or all.
Here are the results for both companies:
The Times, which has transformed itself from a publisher-sponsored publisher to a publisher with the help of paid subscribers, was pleased with the growth of the blockbuster during the Trump administration, and grew well in the first summer of the epidemic. As a reward, the paper has a value of $ 1 billion and its value has increased by 250 percent in the last five years – meaning it has the power to pay. $ 550 million worth of for Athletic, as Axios had earlier stated. (The first notification was about the sale price.)
Instead, Times finds a new subscription business that can be sold along with its main feature. It’s something that doesn’t contradict everything the Times does now. The paper has not neglected sports very much in the last few years, and spends most of its time covering sports teams, which are part of Athletic.
The Athletic, meanwhile, has already signed 1 million paid subscribers, which confuses many skeptics – including the person who writes this – who does not think there are too many paid people to read about their favorite clubs. Joining the Times means that developers enjoy a great advertising engine. And, in particular, it means that the Times can offer subscription packages that contain both publications, which would give Athletic’s subscribers the opportunity to cancel their registration when their team / game is not playing – which Athletic experts tell me is difficult. the company right now.
On the other hand: Why Athletic is selling for $ 550 million – less than that $ 750 million what the company says it wants, and around its estimated value in February 2020, when it last raised – it should.
As The Information by Jessica Toonkel is reports. And even his best hopes were lost until 2023.
The reason the company needed a buyer or seller; a well-known person with the company tells me that Athletic is also talking to Middle East financial resources last fall. The Times deal solves the problem, but it was not the solution Athletic was looking for. That’s why we kept reading about Athletic looking for more promotions last year, lI make a floating plan in combination with Axios and showcasing the publicly integrated company.
And while the Times has been very proud of its registration during the Trump era, that time is up (for now). It has to work hard to find new subscribers, who have been featured reducing the size of the population at different times last year. If the Times feels good about its natural growth, it probably won’t pay around $ 500 for Athletic subscribers.
Instead, it forms the second largest component in paper history. The Times bought the Boston Globe in 1993 for $ 1.1 billion; and in 2005, paid $ 410 million for About.com, its largest digital presence today. None of those deals have worked well with the Times. It lost the Globe in 2013 for $ 70 million, and withdrew nearly $ 300 million in 2012 (by selling it to Barry Diller’s IAC, which turned it into DotDash, which now owns a lot called Time Inc).
Past experiences do not guarantee future results, and the current Times has new business leaders, so it is possible that this will end. But make no mistake: It’s a big bet, with a lot of risk and side effects – and the Times could not have done much earlier.