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Jan 6 (Reuters) – The New York Occasions Co stated on Thursday it has agreed to purchase subscription-based sports activities website the Athletic for $550 million in money, because the 170-year-old newspaper provides extra digital content material to seize subscribers.
Based in 2016, the Athletic had 1.2 million subscribers as of December, and covers greater than 200 golf equipment and groups in the USA and all over the world.
“Buying the Athletic places us ready to be a worldwide chief in sports activities journalism,” stated NYT Chief Government Officer Meredith Kopit Levien.
The deal reveals NYT’s push in the direction of a subscription-first mannequin, which has develop into a rising pattern throughout the media trade, because the newspaper struggles with steep declines in promoting and print readership.
Within the final three years, the corporate stated it has added over eight million paid subscriptions throughout digital and print merchandise.
“We are actually in pursuit of a purpose meaningfully bigger than 10 million subscriptions and imagine the Athletic will allow us to increase our addressable market of potential subscribers,” Levien added.
The deal is predicted to right away add to the newspaper’s income development and be dilutive to its working revenue for about three years.
The Athletic will function as a separate unit of the corporate and its founders, Alex Mather and Adam Hansmann, will keep on with the NYT after the acquisition.
Allen & Firm suggested the NYT on the deal, whereas The Athletic was suggested by LionTree Advisors.
The Info first reported the deal on Thursday. Shares of NYT closed up 4.7% at $47.82.
Reporting by Chavi Mehta in Bengaluru; Enhancing by Arun Koyyur, Devika Syamnath and Shailesh Kuber