Sports-media outlet the Athletic is in merger talks with news startup Axios, according to people familiar with the matter, part of a plan to build a larger online-publishing company that could include going public through a blank-check firm.
The discussions are at an early stage and could fall apart, the people said. Financial terms couldn’t be learned.
Alex Mather, chief executive of the Athletic, approached Axios CEO Jim VandeHei about a week ago with a merger proposal, the people said. The two CEOs have held general conversations about business opportunities during the Covid-19 pandemic, but the talks escalated significantly in recent days, the people said.
It isn’t clear who would lead the combined company.
If Axios and the Athletic merge, the combined company may seek to raise money for expansion and acquisitions, according to people familiar with a presentation aimed at potential investors. The long-term plan is to bring additional digital publishers into the fold, especially those with content that consumers are willing to pay for and that can earn a premium from advertisers, the people said.
