Athletic co-founders Adam Hansmann and Alex Mather
Source: The Athletic
Digital sports publication Athletic and the news service soon Axios are considering merging as part of a broader plan to enroll digital media companies, according to people familiar with the matter .
The Wall Street Journal first reported the news on Friday. One person said the conversations are “extremely early.”
Athletic co-founders Alex Mather and Adam Hansmann spoke to CNBC last year after surpassing one million subscribers. At the time, Mather praised Axios as a company that watched the innovations he could bring to The Athletic.
“We see a company like Axios: what do they do really well?” Mather said in the interview.
“How can we take what they do and apply it to sport? If you’re a fan of politics, they simplify the experience. They give me the things I need and very little that I don’t. There’s an incredible art to that. Not just you say “oh, put it in the bullets!” You’re going through the mess to get to what someone needs to know compared to depth. We also look at our business this way. You may be a fan and read all the articles or that you can be a casual fan. How do we do the casual? happy fan? How do we summarize the day in the NBA every day so that if you’re an informal fan, you can follow him?
The Wall Street Journal noted that the two companies would continue to operate separately as a stipulation of the first merger talks. Still, Mather’s comments offer a window into the kind of stylistic and editorial choices that can come to The Athletic if Axios reporters and editors get help.
A spokeswoman for The Athletic declined to comment on the merger talks and added: “Axios has built an amazing business and we have enjoyed many conversations over the years.”
Similarly, Axios CEO Jim VandeHei noted that companies “have been talking for years about literally our shared passion for premium content companies.” Axios also declined to comment on the merger discussions.
Both Axios and The Athletic have venture capital sponsors who could earn income from investments in digital media companies if they are listed on a special purpose investment vehicle. The New Group has publicly expressed a desire to bring together digital media companies through a SPAC. Buzzfeed has held talks with 890 Fifth Avenue, a SPAC focused on media and telecommunications, according to Bloomberg. Other companies, including Bustle, Vox and Vice, have also had talks about the merger and advertising through a SPAC, CNBC reported earlier this year.
SEE: Liberty Media forms SPAC with plans to list on the Nasdaq.