May 20 (Reuters) – James Murdoch is acquiring three major divisions of Vox Media, including the firm’s New York Magazine and podcast network that together reach tens of millions of people, the digital media outlet said on Wednesday.
The deal is being executed through Murdoch’s investment firm, Lupa Systems, giving him control of one of the most recognizable magazine brands and a sizable podcast business at a time when digital publishers are looking for new growth avenues.
It also includes the Vox news platform, which produces content across multiple formats, including video, text and podcasts such as “Today, Explained” and “America, Actually”.
“This acquisition reflects both our interest in the forward edge of culture and our deep commitment to ambitious journalism,” said James Murdoch, the younger son of media mogul Rupert Murdoch.
James has built Lupa Systems as a media and tech firm separate from the conservative media empire – home to Fox News and News Corp – long led by his father Rupert and now controlled by his brother Lachlan.
Vox’s acquisition is worth more than $300 million, a source close to the transaction told Reuters. New York Times had first reported on the deal on Wednesday.
Vox Media CEO Jim Bankoff will join Lupa Systems, and will continue to lead the brands under the Vox Media label, he said in a note to the company’s staff, adding the deal is expected to close in four to six weeks.
New York Magazine’s publications include The Cut, Vulture and Intelligencer, with a digital audience of tens of millions and more than 400,000 paying subscribers currently.
The Vox Media podcast network carries about 50 shows, including “Pivot” with Kara Swisher and Scott Galloway and crime podcast “Criminal”.
The acquisition does not include other Vox Media brands such as Eater, Popsugar and The Verge. These brands, along with SB Nation and The Dodo, will become an independent company under a new corporate name.
(Reporting by Deborah Sophia in Bengaluru and Dawn Chmielewski in Los Angeles; Editing by Leroy Leo)
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