Sign up to receive 5 free days of our daily summary for tech news.

Read this article for free.

Already a subscriber? Log in here

Media Facebook

The New Dumb Money in Digital Media

You know you are in for a treat when someone who just paid a boatload of cash for an asset tells you not to judge the price by “traditional metrics.” That’s what happened this week when Axel Springer paid $343 million for most of Business Insider, at a roughly 9x revenue multiple. Axel Springer Chief Executive Mathias Döpfner told the Wall Street Journal:

“It’s a Silicon Valley deal,” he said. “You may say that you don’t like that on the East Coast, but if you look at some of the Silicon Valley deals, they work out very well. It’s a growth asset.”

What Is The Information?

Notes bb3aa5069205d702dda37fc71dc6f1c59df2310c4379304e9f1199f052af4884

Exclusive Articles

Receive original reporting about the most important tech companies, from Apple to Uber, in your inbox or online.

Notebook b5103017ee163370a1667c9ce59ab0ef023875a17888105d26c185cadf31bb69

Daily news analysis

Every weeknight, we'll send you our reporters’ views on the day’s top tech news—distilled into one email.

Conference calls c9e664e8b96ee347d3e92b8309938f268422b9db98cfabca5c826fbb75054b23

Conference calls

Go deep into areas like crypto and VC diversity—or get real-time analysis of breaking news—via conference calls with our reporters and other experts.

Events 499acedd16cffc41445edd76bfd302b2836c2a27419890f17130a6b10e2aa3df

Special Events

For no extra fee, subscribers get access to dozens of events a year, from intimate dinners to larger gatherings with marquee speakers.

Access the best reporting on the tech industry read by tens of thousands of global executives.

Become a contributor

Share your views and find other subscribers by completing your profile. You’ll be listed in our contributor directory.

Org Charts

Access the only collection of tech company org charts. Our expanding database includes companies like Amazon, Snap, and Uber.

Slack community

Discuss topics and current events with our subscriber-only Slack group and share news about your company with other subscribers.

Share with your team

Subscribers can unlock any article and share it with friends and co-workers through a special share link.

Stay up to date on Silicon Valley

Sign up for Jessica Lessin’s (The Information’s CEO & Founder) free Saturday newsletter and also receive a complimentary week of our daily afternoon tech commentary email.

Already a subscriber? Log in here

Recent Articles

Entertainment

Esports Audiences Surge, but Better Audience Data Needed for TV Deals

By Matt Pressberg

Media Entertainment Telecom

With Time Warner Win, AT&T Inherits HBO’s Challenges

By Jessica Toonkel

Entertainment

Left on Merger Sidelines, Viacom Strikes Netflix Deal

By Jessica Toonkel

Entertainment

Sports-Free Streaming Service Philo Raises Money as Competition Heats Up

By Jessica Toonkel and Tom Dotan

Tech companies pay premium prices because they believe they can change the economics of what they are buying.