James Murdoch buys New York magazine, Vox podcasts for $419 million

James Murdoch has agreed to buy a significant chunk of Vox Media for more than $US300 million ($419 million), marking a major expansion into US media for the younger son of Australian media mogul Rupert Murdoch.

In the deal announced on Wednesday (US time), James Murdoch’s Lupa Systems, a media and technology holding company, will acquire Vox’s podcast network and New York magazine, a publication once owned by Murdoch senior.

Other properties owned by Vox Media, including technology website The Verge and lifestyle publication Popsugar, aren’t included in the deal.

Financial terms weren’t disclosed, but Murdoch had offered $US300 million for the properties, which include popular shows such as Pivot with Kara Swisher and culture news sites including The Cut and Intelligencer. People familiar with the matter told The New York Times the deal was more than $US300 million.

“This acquisition aligns well with our existing holdings and investments and reflects both our interest in the forward edge of culture and our deep commitment to ambitious journalism and agenda-setting conversations,” Murdoch said in the statement.

“It will allow us to apply new tools across the businesses we are building, adding substantial production, distribution, and editorial capability to our group.”

The deal marks the first notable transaction since Murdoch cashed out the last of his share of the family’s interest in News Corp and Fox Corp last year as part of a $US3.3 billion ($4.6 billion) agreement with his father and siblings to resolve an acrimonious succession battle.

Lupa Systems, which Murdoch founded in 2019, has made a number of investments in media as well as businesses tied to pop culture, including a streaming service in India and the parent company of the Art Basel fairs. Earlier this year, Murdoch revealed plans to launch a new ideas expo in Switzerland.

Murdoch, 53, clashed at times with his father and older brother Lachlan over management and editorial direction of the family’s media empire, which includes the Wall Street Journal, Fox News and the New York Post.

In 2020, Murdoch left the board of News Corp, citing “disagreements over certain editorial content published by the company’s news outlets and certain other strategic decisions.” He and his wife Kathryn have criticised the way his family’s papers have covered climate issues.

In an interview with The New York Times published on Wednesday, Murdoch said the fact that his father had once owned New York magazine had no special significance. He said he was interested in “thoughtful journalism” and was just trying to “build a great business”.

Both the print and podcast portions of the business are profitable, according to a person familiar with the deal. Murdoch sees an opportunity to add more shows to the podcast network, building on what he believes is a growing market for unique voices in that medium, said the person, who asked to not be identified because the plans aren’t public. With New York magazine, Murdoch intends to increase online subscriptions.

The Vox podcast network, home to shows including Criminal and Where Should We Begin? with Esther Perel, has been the fastest growing business within Vox Media and will immediately put Lupa at the top of the podcast field, according to the company.

The new Vox Media will be led by co-founder Jim Bankoff, who has led the company since its early days as a network of a dozen grassroots sports blogs.

Bloomberg

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