Startups Axios and the Athletic discuss merger, consider SPAC deal

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Sports-media outlet the Athletic is in merger talks with news startup Axios, according to people familiar with the matter, part of a plan to build a larger...

Sports-media outlet the Athletic is in merger talks with news startup Axios, according to people familiar with the matter, part of a plan to build a larger online-publishing company that could include going public through a blank-check firm.

If Axios and the Athletic merge, the combined company may seek to raise money for expansion and acquisitions, according to people familiar with a presentation aimed at potential investors. The long-term plan is to bring additional digital publishers into the fold, especially those with content that consumers are willing to pay for and that can earn a premium from advertisers, the people said.

Axios and the Athletic believe one potential growth area is selling subscriptions to businesses at a premium rate, according to the people familiar with the investor presentation. VandeHei and one of his co-founders, Axios President Roy Schwartz, helped create Politico Pro, a business-to-business publication, when they both worked at Politico.

 

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