Athletic co-founders Adam Hansmann and Alex Mather
Source: The Athletic
Digital sports publication The Athletic news service and the short form Axios are considering merging as part of a broader plan to set up digital media companies, according to people familiar with the matter.
The Wall Street Journal first reported on the news on Friday. The talks are “extremely early,” said one of the people.
Athletic co-founders Alex Mather and Adam Hansmann spoke to CNBC last year after exceeding the 1 million subscriber mark. At the time, Mather praised Axios as a company he pursued for innovations it could bring to Athletic.
“We look at a company like Axios – what are they doing very well?” Mather said in an interview.
“How can we take what I do and apply it to sports? If you’re a casual fan of politics, they simplify the experience. They give me the things I need and very little I don’t. There’s an incredible art to it. You don’t just say ‘oh, just put him in bullets! ” We go through the crowds to get to what someone needs to know about the depth we have, we look at our business, you might be a tough fan and read every article or you might be a “How do we make the casual fan happy? How do we summarize the day in the NBA every day so that if you’re a casual fan, you can watch?”
The Wall Street Journal noted that the two companies will continue to operate separately as a stipulation of early merger negotiations. However, Mather’s comments provide a window into the type of stylistic and editorial choices that could come to The Athletic if Axios reporters and editors are asked for help.
A spokeswoman for The Athletic declined to comment on the merger, adding: “Axios has built an incredible business and we have enjoyed many conversations over the years.”
Similarly, Axios CEO Jim VandeHei noted that companies “have been talking for years about our shared passion for premium content companies.” Axios also declined to comment on the merger talks.
Both Axios and The Athletic have venture capitalists who could monetize investments in digital media companies if they become public through a special purpose investment vehicle. The Nine Group has publicly stated its desire to set up digital media companies through a SPAC. Buzzfeed was in talks with 890 Fifth Avenue, a SPAC focused on media and telecommunications, according to Bloomberg. Other companies, including Bustle, Vox and Vice, have also discussed merging and publishing through a SPAC, CNBC reported earlier this year.
Look: Liberty Media forms the SPAC with Nasdaq listing plans.