Christopher Palmer
Updated ,first published
James Murdoch has agreed to buy a majority stake in Vox Media for more than $300 million ($419 million), marking a major expansion into American media for the younger son of Australian mogul Rupert Murdoch.
In the deal announced Wednesday (US time), James Murdoch’s Lupa Systems, a media and technology company, will acquire the Vox podcast network and New York newspaper, a publication once owned by the Murdoch prince.
Other properties owned by Vox Media, including tech website The Verge and lifestyle publication Popsugar, are not included in the deal.
Financial terms were not disclosed, but Murdoch had offered 300 million dollars for the propertywhich includes popular shows such as Pivot with Kara Swisher and culture news sites including The Cut and Intelligencer. People who know about it he told it New York Times the deal was more than 300 million dollars.
“This acquisition is a good fit with our existing stock and investments and reflects our interest in the future direction of culture and our commitment to ambitious journalism and agenda-setting conversations,” Murdoch said in the statement.
“It will allow us to use new tools in the businesses we build, and add production, distribution, and editing capabilities to our group.”
The deal marks the first high-profile transaction since Murdoch he gave up his last share of the family’s interests in News Corp and Fox Corp last year as part of a $3.3 billion ($4.6 billion) deal with his father and brothers to resolve a serious series conflict.
Lupa Systems, which Murdoch founded in 2019, has made several investments in media and pop culture-related businesses, including a streaming service in India and the parent company of Art Basel exhibitions. Earlier this year, Murdoch revealed plans to launch a new think tank in Switzerland.
Murdoch, 53, has at times clashed with his father and older brother Lachlan over the management and editorial direction of the family’s media empire, which includes The Wall Street JournalFox News and New York Post.
In 2000, Murdoch left the News Corp board, citing “disagreements over certain editorial content published by the company’s media and other strategic decisions.” He and his wife Kathryn have criticized the way his family’s papers have covered climate issues.
In an interview with New York Times published on Wednesday, Murdoch stated the fact that his father once owned it New York the newspaper had no special importance. He said he was interested in “thoughtful journalism” and was just trying to “build a big business”.
Both the publishing and podcast segments of the business are profitable, according to a person familiar with the deal. Murdoch sees an opportunity to add more shows to the podcast network, building on what he believes is a growing market for unique voices in the channel, said the person, who asked not to be identified because the plans are not public. And New York newspaper, Murdoch intends to increase online subscriptions.
The Vox podcast network, home of shows including Criminal and Where Do We Begin? with Esther Perelhas become the fastest-growing business within Vox Media and will immediately place Lupa at the top of the podcast field, according to the company.
The new Vox Media will be led by co-founder Jim Bankoff, who has led the company since its early days as a network of several grassroots sports blogs.
Bloomberg
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