Atlantic Media is selling its digital business news site Quartz to a little-known Japanese media company.
Uzabase, based in Tokyo will pay between $ 75 million and $ 110 million for Quartz, depending on the amount of revenue the site generates during the rest of this year, it said in a statement.
Uzabase was founded 10 years ago by two investment bankers and an IT consultant who built their own corporate data service. The company branched into the media industry in 2013, launching the business news application NewsPicks.
Since then, the news aggregation platform has attracted more than 3 million users, and Uzabase says that about half of NewsPicks' revenues come from subscriptions, which cost $ 15 per month. The company partnered with News Corp ( Dow Jones presented the application in the United States last year. )
Now aims to expand its international operations with Quartz, which made a name for its digital approach to business news, focusing on readers who get their information through mobile devices and social networks.
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The media industry is increasingly pressured by technology companies like Google  ( and ) Facebook ( that have powerful control over the digital advertising industry. )
But Quartz says it has achieved success through its "native advertising" approach, in which brands sponsor items and products instead of simply paying for regular display ads. The site said it is on track to increase advertising revenue by up to 35% this year.
According to the Uzabase agreement, Quartz will seek to earn money from other areas, such as subscriptions. As part of the acquisition, Quartz will assume responsibility for the English version of NewsPicks.
"We expect our existing products to remain free, but we are very focused on offering them premium content and services," Quartz editor-in-chief Kevin Delaney and editor Jay Lauf said in a memo to readers on Monday. .
Quartz will be headquartered in New York, its leadership will remain the same and it will continue to operate its handful of offices in the United States and abroad, the companies said.
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Quartz has several digital products, including its website, mobile application, e-mail newsletters and content from video.
Quartz was "truly the first new media company to successfully combine quality journalism with mobile technology," Yusuke Umeda, CEO of NewsPicks, said in a news release. "I am very excited to enter the next chapter of the growth of NewsPicks with a company and a team that I respect so much," he added.
Uzabase said that the agreement is expected to close in the next 30 days.
The sale of Quartz to a Japanese company comes three years later to the purchase of the Financial Times by the Japanese publishing group Nikkei.
CNNMoney (Hong Kong) First publication on July 2, 2018: 5:44 AM ET
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