5:58 PM
The New York Times Co. is buying The Athletic for $550 million in order to expand its audience of paying subscribers.
The Times has thrived in the past several years. It gained millions of subscribers during the Trump presidency and is on track to reach its goal of 10 million subscribers by the year 2025.
The Times had over 8 million as of the most recent quarter. The news traffic boom of 2020 has led to a decline in coverage, but it has diversified with lifestyle advice, games and recipes.
The New York Times Co. is trying to reach a goal of more than 10 million subscribers and believes The Athletic will help it do that.
It's one of the Times' largest acquisitions. The company spent over $1 billion on the Boston Globe in 1993 and $410 million on About.com in 2005, but later sold them for less.
Digital media outlets are trying to compete for online ad revenue with tech giants. Group Nine Media, owner of The Dodo and Thrillist, is being bought by a group of companies.
According to the Times, The Athletic covers more than 200 teams. It was founded in 2016 to cater to sports fans willing to pay for stories. There are 1.2 million subscribers. It is a major acquisition for The Times, which has more than 2,000 editorial employees.
The deal is expected to close in the current quarter.
