James Murdoch has made his most significant move into media ownership, with his investment company Lupa Systems acquiring roughly half of Vox Media in a deal worth $300 million (A$419 million).
The acquisition gives Murdoch control of three of Vox Media’s most prominent assets including New York Magazine, the Vox Media Podcast Network and Vox.com.
The deal does not include some of the company’s other well-known properties including The Verge, Eater, SB Nation, Popsugar and The Dodo. These will be separated into an independent company under a new name, led by current Vox Media president Ryan Pauley.
New York Magazine was previously owned by James Murdoch’s father, Rupert, from 1976 until 1991.
Vox Media CEO Jim Bankoff will remain at the helm once the acquisition closes, which is estimated to take four to six weeks. The new entity will continue to operate under the Vox Media name as a subsidiary of Lupa Systems.
Murdoch framed the purchase as consistent with Lupa’s broader cultural and journalistic ambitions: “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,”
“It will allow us to apply new tools across the businesses we are building, adding substantial production, distribution, and editorial capability to our group.” said Murdoch, in a statement from Vox Media.
Bankoff, who will lead the newly structured company added: “We are incredibly proud to have built and scaled several of the leading media properties of this generation,”
“Together under Lupa’s stewardship we are primed to be the best home for talent and the most dynamic media company of this new era.”
In an email to staff, which Vox Media published on its website, Bankoff said: “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.”
“James and Kathryn Murdoch understand what we’re building, respect editorial independence, and are deeply committed to this new company’s success. ”
The move represents a significant chapter in James Murdoch’s post-News Corp trajectory. He departed the News Corporation board in 2020 amid disagreements over the company’s editorial direction. He has since backed a number of independent journalism ventures alongside his wife Kathryn Murdoch.
This purchase marks the first major media investment James Murdoch has made since a court ruled in favour of his older brother Lachlan Murdoch, in a closely watched succession-style dispute last year. It resulted in Lachlan Murdoch being awarded with full control of a newly established trust, holding the voting shares in both Fox Corporation and News Corp. James, Elisabeth and Prudence Murdoch walked away with a reported US$1.1 billion (AU$1.5 billion) each.
Penske Media Corporation, owner of publications including Variety and The Hollywood Reporter, holds a minority stake in Vox Media from a 2023 deal and remains a stakeholder in the business.
LionTree advised Vox Media on the sale, while Gibson Dunn advised Lupa Systems.
