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New York (CNN Business)Axios, the buzzy digital media venture founded in in 2017, will sell itself to Cox Enterprises, the two companies announced on Monday.
The deal, which is expected to close this month, values Axios at $525 million, a person familiar with the matter told CNN.
Axios is known for delivering news in brief stories that are comprised of bite-sized pieces of information. The publication is also known for its popular newsletters that often drive the national conversation, especially in Washington, DC.
News of the deal was first reported by The New York Times.
Cox Enterprises, which was already a top investor in Axios, said that Axios co-founders Jim VandeHei, Mike Allen, and Roy Schwartz will continue to lead the outlet’s day-to-day editorial and business decisions.
VandeHei, Allen, and Schwartz will also continue to hold “substantial stakes in the company,” Cox Enterprises said. While the three co-founders will remain on the board, Cox Enterprises will control it with four board seats.
“We have found our kindred spirit for creating a great, trusted, consequential media company that can outlast us all,” VandeHei said. “Our shared ambitions should be clear: to spread clinical, nonpartisan, trusted journalism to as many cities and as many topics as fast as possible.”
Cox Enterprises chief executive Alex Taylor praised Axios as a “forward-thinking organization.” Taylor said Cox Enterprises looks forward “to helping them continue to scale and grow.”
“With so much happening in the world, Axios plays a critical role in delivering balanced, trusted news that people need,” Taylor said. “Our company started in the media business, and we have always had a passion for journalism.
Cox Enterprises said that its other media companies, such as the Atlanta Journal-Constitution and Dayton Daily News, will not be impacted by the deal.
Axios HQ, the company’s software arm, will not be sold to Cox Enterprises as part of the transaction. It will instead be spun off into a separate company led by VandeHei as chairman and Schwartz as chief executive.
“We are excited about entering into this new chapter with Cox and the opportunities we can explore with Axios HQ as a separate business,” Schwartz said. “For both companies, our mission is to help as many people and companies get smarter, faster on what matters.”
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