Athletic, Axios talking merger?

You're right, it only takes one. Hope they get one. Wishing the best for so many good people there.

But, in the business deals I've covered, the folks who talk the most do the least. If you're really as valuable as you say, you're having discussions with multiple suitors out of public view. You're not planting stories in Axios and spending the better part of the year running around wearing a "FOR SALE" sandwich board.

 

I may be wrong on this and maybe Moddy can answer this, but didn't a lot of the employees who got hired the first couple years also have stakes in the company, meaning they could make or lose money if the company is sold?

 

Does anyone know how much the Athletic has lost through the first half of the year? The Athletic is instituting a price increase that should increase revenues by 12-15 million dollars annually assuming they can hold their circulation at 1.2 million. I would also guess that the podcasts are seeing additional ad dollars. If they are close to break-even they should sell pretty quickly, though not necessarily for 750 million. If the losses are above, for example, three million dollars a quarter it will be a tough sell.

I will note when Meredith tried to sell Sports Illustrated it had one hell of time doing so, finally leasing it to Maven.

 

Isn't it likely circulation would drop below 1.2 million with a price increase. The question is how much would it drop.

 

You are correct. I presented my example in to simplistic a fashion.

 

Not saying that the Athletic will succeed or be sold - or collapse - but plenty of start-ups lose money by the long ton. Traditional notions of profit and loss went the way of the dodo decades ago.

Twitter reports $1.14 billion net loss for 2020; costs & expenses rise by 19%

Uber losses widen as incentives to lure drivers hit revenues

Tesla Loses A Lot Of Money Selling Cars, But Makes It All Back On Credits And Bitcoin

Guessing game: How much money is YouTube losing?

 

If The Athletic is offering me $9.99/year to come back, is this a bad sign for The Athletic?

 

I would find $750M for The Athletic if they'd stop airing those gawdawful commercials featuring podcast hosts and listeners.

 

If a sub is worth $10 and that’s the sole revenue stream, then a $750M valuation would require a 18,750,ooo subscribers a year if you’re basing your purchase on 4 years of revenue.
Hmmm….

 

18,750,000 minus 1.2 million =

 

If The Athletic gets 750 million dollars it will blow the mind of every finance professor I ever had in college. But there is Tesla so who the hell knows.