Axios has agreed to sell itself to Cox Enterprises in a deal that values the digital media firm at $525 million, a source familiar with the matter said on Monday.
Atlanta-based Cox, a family-owned conglomerate that also owns the Dayton Daily News and other newspapers in Ohio, said the acquisition will help diversify its business.
Axios is selling at roughly five times its projected 2022 revenue of more than $100 million, according to the source.
Founded in 2017, Axios is known for its bulletin-style reporting of politics, business and technology news.
Jim VandeHei, Mike Allen and Roy Schwartz started the media company after they left news website Politico in 2016, which VandeHei also helped found. Politico went on to sell itself to German publisher Axel Springer for more than $1 billion last year.
VandeHei, Allen and Schwartz will continue to lead editorial decisions at Axios, Cox Enterprises said, adding that Cox Chief Executive Alex Taylor will join Axios’ board.
Communications software business Axios HQ will become an independent company majority-owned by Axios co-founders and Cox Enterprises will be the sole minority investor.
The New York Times first reported about the deal.