Christine Lagorio-Chafkin of Inc. magazine talked to Business Insider co-founder Kevin Ryan on the decision to sell an 88 percent stake in the business news site to Axel Springer for $343 million.
Lagorio-Chafkin writes, “After getting to know the company better, Ryan says Springer execs called him in July and said, ‘listen, we’d like to make an offer.’ His response? ‘Look, anything is possible, but we are not thinking about selling,’ he says.
“Ryan and Blodget had been growing the company reliably over recent years, and scaling journalistic output across its small network of popular business websites. To increase traffic, in 2015 the company hired 75 editorial staffers — increasing the total to 175. As revenue climbed, Ryan says the $100 million mark seemed within reach — so he and Blodget began to have conversations about going public through an IPO. They expected to do so in about two years, he said.
“Soon, though, Springer came back with a better offer. Ryan worked to finalize it by the end of August.
“‘I never think about selling, when I’m running a business,’ Ryan says. ‘But — it’s a business. If someone offers a good price you have to entertain it. And all the better, when you have to know it’s a good home.'”
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