Springer is paying $343 million to buy 88 percent of the company after taking a 9 percent share during a funding round last January. The remaining three percent of the company is held by the investment firm owned by Amazon founder Jeff Bezos.
The acquisition — at a cost that surpasses the $315 million AOL paid to acquire the Huffington Post in 2011 — comes in the wake of Springer's failed attempt last summer to buy the FT Group, owner of the Financial Times.
Business Insider, a New York City-based business and financial news site, launched in February 2007. Founded by Kevin P. Ryan, an Internet entrepreneur, and Henry Blodget, who became the CEO. and the editor-in-chief, it employs more than 325 people. About 50 percent of the staffers are journalists.
Business Insider also organizes conferences and research related to digital media. In January, it launched BI Intelligence, a subscription-based research service that provides data and analysis on the mobile, payments, e-Commerce, and social, and digital media industries.
Springer had revenues of $3 billion last year, at least 50 percent of which was generated from its digital media activities. According to a statement from the company, the acquisition will play a key part in its strategy to expand and develop its global footprint.
Business Insider will add 76 million unique monthly visitors to Springer’s audience, bringing it to an estimated 200 million users and making it one of the world’s six largest digital publishers in terms of reach, the statement continued.
Blodget and Julie Hansen, Chief Operating Officer and President, will continue to lead Business Insider in their respective roles.
Thanks, everyone! Very kind. So grateful to our readers and clients and so proud of our team. Axel Springer an amazing company.— Henry Blodget (@hblodget) September 29, 2015