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New York Times to buy sports site the Athletic in $550 million deal

by Mike Robinson

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© Reuters. FILEPHOTO: The New York Times building can be seen in Manhattan, New York (USA), August 3, 2020. REUTERS/Shannon Stapleton

(Reuters) – The New York Times Co agreed to purchase subscription-based site The Athletic for $550 million. This was reported by the Information on Thursday. The source was a familiar with the matter.

According to the report, while the Athletic generated $47 million revenue in 2020, it was forced by the Pandemic to reduce staff and pay in the first months. This happened when many live sports events were cancelled.

According to the report, company forecasted last fall 2021 revenues of $77 millions and cash burn at $35,000,000.

The Athletic and The New York Times did not respond immediately to Reuters’ requests for comment.

As the newspaper turns 170-years-old, the deal will allow it to expand its digital offerings. The subscription-first model of the paper that has helped it weather declines in print and advertising readerships is also being used.

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