AAA Axel Springer pays $343m for control of Business Insider

Axel Springer pays $343m for control of Business Insider

Digital media firm Axel Springer agreed today to pay $343m for an 88% stake in US-based online media company Business Insider, already one of its portfolio companies.

Founded in 2007, Business Insider covers business news from around the world in addition to more generalised viral content.

The company, which employs 325 people and attracts 76 monthly unique visitors, also offers a paid data subscription service called BI Intelligence.

Axel Springer already held a 9% stake in Business Insider after leading a $25m round in January 2015 that also included Institutional Venture Partners (IVP), RRE Ventures, Jeff Bezos and undisclosed existing investors.

Business Insider had by that point already raised a total of approximately $31m from IVP, RRE, Bezos, Allen & Company, Gordon Crovitz, Marc Andreessen and Ken Lerer. Bezos Expeditions, Bezos’ investment vehicle, will retain a 3% stake but the other investors will all exit.

Although based in the US, Business Insider operates eight national sites and plans to open a German site later this year that will be operated by Axel Springer subsidiary Finanzen.net.

Henry Blodget, founder, chief executive and editor-in-chief of Business Insider, said: “It is a pleasure and privilege to join forces with such a smart, forward-thinking team. We look forward to working together to build a major global news organisation for the digital century.”

Mathias Doepfner, Axel Springer’s CEO, added: “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.”

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