James Murdoch is buying a big chunk of Vox Media.
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Vox Media will split into two entities, with Murdoch’s company acquiring New York magazine, the Vox Media Podcast Network, and Vox. They’ll be led by Vox Media CEO Jim Bankoff.
The remaining brands — Eater, Popsugar, SB Nation, The Dodo, and The Verge — will become a separate company led by Vox Media exec Ryan Pauley.
With the transaction, the Murdoch family scion will acquire media properties with clear cultural relevance.
New York is a celebrated culture and politics magazine that Murdoch’s father — conservative media mogul Rupert Murdoch — once owned. It also has influential sub-brands, including Vulture and Intelligencer. Acquired by Vox Media in 2019, its journalism regularly wins awards and has been adapted into TV shows and movies, though it’s faced some financial headwinds.
The Vox Media Podcast Network has been the company’s economic growth engine in recent years. It’s anchored by the prominent hosts Kara Swisher and Scott Galloway of “Pivot,” and includes shows hosted by notables like Preet Bharara and Esther Perel.
The Vox properties will be part of Murdoch’s Lupa Systems, which has interests in other cultural heavyweights, such as the Tribeca Film Festival and Art Basel.
The deal follows a dramatic battle over the Murdoch Family Trust, which controls key media properties such as Fox News and The Wall Street Journal. The dispute ended last year with a settlement that saw James Murdoch (and two of his siblings) part with their stakes in exchange for about $1.1 billion in cash compensation each.
Here’s the memo from Bankoff to Vox Media staff:
Team,I have important news to share with you: Vox Media is becoming two independent companies.Lupa Systems, James Murdoch’s media and technology holding company, is acquiring New York Magazine, the Vox Media Podcast Network, and Vox. Those properties will form a new media company under Lupa ownership, which will carry the Vox Media name forward, and I’ll serve as its CEO when the transaction closes. Eater, Popsugar, SB Nation, The Dodo and The Verge will make up a second independent company under a new corporate name, which will be determined in the weeks ahead, with Ryan Pauley continuing at that company as its leader post-closing. We expect this transaction to close in 4-6 weeks, pending customary closing conditions; Ryan, Lauren Rabaino, and I will lead the transition planning during this time. I realize there will be many questions that we will not be able to answer yet, but we will share decisions with the appropriate people first as they are made, just as we are doing today.Separating into two distinct companies best sets up our brands, shows, businesses, talent, and teams to continue to lead and prosper in the changing media landscape. Each company will be better positioned to grow within a focused portfolio of complementary businesses. Lupa’s investments in Tribeca Enterprises and Art Basel reflect the same belief in culture, creativity, and talent that defines New York Magazine, Vox, and the podcast network, a business that has become our fastest growing over the past five years. James and Kathryn Murdoch understand what we’re building, respect editorial independence, and are deeply committed to this new company’s success.Eater, Popsugar, SB Nation, The Dodo, and The Verge are each in a strong place as distinct brands, and we have no plans to separate them. Each will continue under its current leadership, and Ryan will keep working closely with those leaders to deliver on every brand’s individual strategy. We have made real progress building a brand-led business, including a commercial structure designed to support each brand’s unique opportunity.What began two decades ago as SB Nation has been built into one of the pre-eminent media groups of our time, a top 10 U.S. media company by audience with a premium portfolio of engaging brands and one of the largest and most influential podcast networks in the country. We started from scratch and grew both organically and through smart acquisitions, through persistent change and turbulence, thanks to our commitment to constant innovation and quality. Throughout the company’s history we have pioneered new formats, from blogging in our early days to the much-imitated explainer format to social video series to podcasts. We have won awards, changed lives, and served billions of people who have come to us based on trust and relevance.While it hasn’t always been easy, our work has always been meaningful and essential. The media industry is at the forefront of technological, societal and economic change. We have always adapted and led the way, and I believe authoritative work from trusted brands and talent is more necessary than ever. Our audiences find essential information and community with us, delivered in engaging formats across all modern platforms.Accomplishing what we have together with you and so many others has been the greatest source of pride and joy of my career. Performance and teamwork at the highest levels with so many talented, motivated and kind people is what defines us. At this pivotal milestone, I’d like to express my enormous gratitude to all of you for all you’ve contributed to bring us to this moment. Every day I am inspired by what we’ve built, the collaborative environment we do it in, and our limitless ambition. Last night’s two National Magazine Awards wins for New York Magazine, including General Excellence, the night’s top honor, are the latest testament to that excellence. Our work has been supported by loyal and growing audiences, blue chip business partners and advertisers and high integrity investors to whom I am also immensely grateful.There will be external news coverage and an announcement very shortly. The next several weeks will be focused on closing the deal and standing up the transition plan for both companies, and we’ll communicate consistently throughout. You will be hearing more from your leaders about what this change means for you and your team. Again, thank you for your continued focus and commitment to excellence.Onward,Jim
