WSJ News Exclusive | Sports-Media Outlet the Athletic Shifts Its Search for Merger Partner

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The Athletic is no longer in merger talks with Axios, people familiar with the situation said, but the subscription based sports-media outlet is continuing its search for a merger partner. The company views The New York Times as a leading contender.

The Athletic charges $7.99 a month for sports content, including coverage of teams in all the major sports. The outlet has recruited beat reporters and columnists in local markets, often by offering big pay increases to attract them from traditional news organizations.

The company competes against a host of sites that mostly offer free sports content, including the Ringer, Bleacher Report, Yahoo Sports and ESPN.com. The Athletic was valued at $475 million in its last funding round, announced in January 2020, according to PitchBook. The Athletic doesn’t disclose detailed financial results, including whether it is profitable. The company generated about $80 million in revenue in 2020, according to a person familiar with the matter. It raised $55 million in January 2020 and has significant expenses, according to people familiar with the matter, including more than 600 employees, many of them top-tier reporters recruited from other news organizations.

Operational costs have been reduced during the pandemic, with many of the Athletic’s local beat reporters suspending travel.. The companies jointly explored a tie-up that could involve a deal with a special-purpose acquisition company—also known as a blank-check company—but those discussions haven’t moved forward, people familiar with the situation said.

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wut?

At least that way the Times would have local baseball coverage again

Why is it called “Wall Street” anyways?

Invest in SafeMoon

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