Axel Springer SE is acquiring approximately 88 percent of the shares in New York City-based Business Insider, the digital offering for business news in the U.S.
The purchase price based on 100 percent of Business Insider amounts to USD 442 million (currently approximately EUR 395 million) on the basis of a cash and debt free valuation of USD 390 million (currently approximately EUR 348 million). The valuation corresponds to an amount of USD 343 million (currently approximately EUR 306 million) for the 88 percent of the shares that Axel Springer is acquiring. Axel Springer already holds a stake of approximately nine percent in the company and, after this purchase, will hold a stake of approximately 97 percent. Bezos Expeditions, the personal investment company of Jeff Bezos, will hold the further shares.
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. They will also remain significantly invested in Business Insider through an extensive, long-term equity incentive. Kenneth Lerer, Managing Partner at leading 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.
Mathias Döpfner, CEO of Axel Springer SE: “With the acquisition of Business Insider, we continue with our strategy to expand Axel Springer’s digital reach and, as previously announced, invest in digital journalism companies in English-speaking regions of the world. Business Insider has set new standards in digital business journalism globally. Henry Blodget’s way of digital storytelling reaches tomorrow’s decision-makers. Combining our forces will allow us to unlock growth potential and expand Business Insider’s portfolio to new verticals, new locations and new digital content. We look forward to working together with Henry Blodget, Julie Hansen and the exceptional Business Insider team to continue shaping the future. At the same time, I am thrilled to have our close partner Ken Lerer joining us.”
Business Insider was launched in 2007 by Henry Blodget, Kevin Ryan and Dwight Merriman. It employs more than 325 people, approximately 50 percent of whom are journalists. In addition to its U.S. news sites, the company has a growing international presence, with local editions or licenses in seven other countries. 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.
Germany, Berlin & USA, New York, NY
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