Digital publisher Axel Springer SE is to acquire approximately 88% of the shares in New York City-based Business Insider, one of the leading digital sites for business news in the U.S.
The purchase price based on 100% of Business Insider amounts to USD 442m (currently approximately €395m) on the basis of a cash and debt free valuation of $390m (currently approximately €348m).
The valuation corresponds to an amount of $343m (currently approximately €306m) for the 88% of the shares that Axel Springer is acquiring. Axel Springer already holds a stake of approximately 9% in the company and, after this purchase, will hold a stake of approximately 97%. Bezos Expeditions, the personal investment company of Jeff Bezos, will hold the further shares.
The acquisition is a part of Axel Springer’s strategy to broaden its global reach and diversify its English-language offerings. Business Insider’s 76 million unique monthly visitors will increase Axel Springer’s worldwide digital audience by two-thirds to approximately 200 million users.
Following the close of the transaction, still subject to approval by antitrust authorities, Henry Blodget, Founder, Chief Executive Officer and Editor-in-Chief, and Julie Hansen, Chief Operating Officer and President, will continue to lead Business Insider in their respective roles. Kenneth Lerer, Managing Partner at early-stage technology venture capital firm Lerer Hippeau Ventures, Co-Founder of Huffington Post and Chairman of Buzzfeed, will receive a seat on the Board of Business Insider.
Launched in 2007 by Henry Blodget, Kevin Ryan and Dwight Merriman, Business Insider A German edition will be introduced in the fourth quarter of this year and will be operated by finanzen.net, a company of Axel Springer SE. Editions for other countries are in development. It currently employs more than 325 people. operates U.S. news sites, with local editions and licenses in seven other countries.
FinSMEs
29/09/2015