“We invested in Axios because we are simply passionate about journalism and news coverage,” Cox Enterprises Chairman and CEO Alex Taylor said in an interview. “…Axios is an exciting company. I think they operate the best national platform in the country and they have the fastest growing local platform. »
Cox bought a minority stake in Axios last year and the relationship evolved. Taylor said the combination of Cox and Axios was a natural fit for a family business founded in journalism more than a century ago.
Cox is one of the nation’s largest family businesses with annual sales of over $20 billion. Cox was founded in 1898 by Ohio Governor James M. Cox and his purchase of the Dayton Daily News. Cox has owned and operated newspapers, including the AJC, and television and radio stations for decades.
In recent years, Cox has sold majority stakes in its television and radio stations, although it retains minority shares. The Axios deal pushes Cox back into the national media landscape at a time when the company has sought to overhaul and diversify its business.
Taylor said the AJC, Dayton Daily News and Cox’s other Ohio newspapers will not be affected by the transaction and each will continue to operate independently. Taylor said there may be opportunities for media companies to collaborate, but there are no plans to integrate the companies.
Cox Enterprises Chairman and CEO Alex Taylor said Axios was a natural fit for a family business founded in journalism more than a century ago.
Credit: AJC archive photo
Credit: AJC archive photo
Cox Enterprises Chairman and CEO Alex Taylor said Axios was a natural fit for a family business founded in journalism more than a century ago.
Credit: AJC archive photo
Credit: AJC archive photo
Cox also operates broadband giant Cox Communications, automotive companies including AutoTrader, and has branched out into new sectors like agriculture and clean technology. Cox is also one of the biggest investors in electric vehicle startup Rivian.
When Cox made its first investment in Axios last year, the commitment reportedly valued the company at $430 million.
Taylor credited Axios founders Jim VandeHei, Mike Allen, and Roy Schwartz for recruiting the best journalists and creating a storytelling style that was non-partisan and true to the facts.
Taylor said “the Fourth Estate is more important than ever” in this age of political polarization.
The co-founders will retain stakes in the company that have been described as “substantial” and will continue to direct Axios’ day-to-day editorial and business decisions.
“We have found our kindred spirit to create a large, consequential and trusted media company that can outlast us all,” Axios CEO VandeHei said in a press release. “Our shared ambitions must be clear: to deliver clinical, nonpartisan, and trusted journalism to as many cities and topics as quickly as possible.”
The global media landscape has undergone a radical change over the past few decades. Newspapers have been strained by falling print subscriptions and advertising revenue that has shifted to tech giants such as Google and Facebook. Newsrooms have moved to digital while remaining impacted by legacy operations and costs. Broadcast and cable news has also been challenged by cable cuts and changing advertising spending and consumer preferences.
The disruption has opened the door to new entrants, such as Axios and sports-focused publications like The Athletic. European media giant Axel Springer recently acquired Politico and has reportedly explored an investment in Axios.
Earlier this year The Athletic was acquired by The New York Times Co. and now Axios joins Cox.
Taylor, who will join Axios’ board, said Axios is profitable with much of its revenue generated from digital advertising and subscribers to its Pro offerings.
As part of the deal, Axios’ communications software company, known as Axios HQ, will become a separate company that will be majority-owned by its founders, and Cox will be its only minority investor. VandeHei will be the president of Axios HQ and Schwartz its CEO.
Taylor said it’s possible the relationship with Axios HQ will grow as well.
“We are excited to enter this new chapter with Cox and the opportunities we can explore with Axios HQ as a separate business,” Schwartz said in the release. “For both companies, our mission is to help as many people and businesses become smarter and faster about what really matters in this world.”