(TruthandLiberty.com) – Merger acquisitions in the news media are nothing new. Often, an acquisition comes about because a business has value to the purchasing company, but it’s not necessarily profitable. In the matter of Politico, buyers seemed willing to take a loss for the greater good.
JUST IN: Politico to Be Sold to Publishing Group Axel Springer for Amount Reportedly Near $1 Billion https://t.co/CaKWSL2UP4
— Mediaite (@Mediaite) August 26, 2021
German publishing group Axel Springer is purchasing the political news outlet from Robert Allbritton for an astounding $1 billion. The company is also acquiring the remaining 50% stake in Politico Europe and the technology news website Protocol. Allbritton will retain his role as publisher of the new political news company.
Politico generates approximately $220 million per year. In a competitive news industry online, that’s a solid figure. However, when considering the cost of the purchase to the revenues, it’s one of the most expensive media buys in recent history. The $1 billion acquisition is five times more than Politico’s yearly gross sales.
Axel Springer CEO, Mathias Döpfner, expressed his excitement at the merger. The CEO stated it’s a privilege to shape one of the leading political media companies. He added that objective journalism, editorial independence and nonpartisan reporting are essential right now.
Only time will tell if any of those statements hold true at the new Politico.
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