James Murdoch to acquire New York Magazine, Vox.com
James Murdoch has agreed to acquire New York Magazine and the Vox Media podcast network in a deal that will significantly expand its portfolio and increase its influence over news and entertainment.
The deal, valued at more than US$300 million ($421 million), gives Murdoch control of a famous magazine brand as well as a podcast division whose reach in a demographic coveted by advertisers rivals cable television news networks, multiple people with direct knowledge of the purchase said.
This includes the political news site Vox.com.
“This acquisition reflects both our interest in advancing culture and our deep commitment to ambitious journalism,” Murdoch, the younger son of media mogul Rupert Murdoch, said in a statement announcing the acquisition.
His company, Lupa Systems, will purchase both properties from Vox Media.
Murdoch and his wife, Kathryn Murdoch, were closely involved in casting Vox’s key talent, including Kara Swisher and Scott Galloway, hosts of the popular Pivot podcast and several other shows on the company’s podcast network.
“I love James and Kathryn,” Swisher said in a phone interview after the deal was announced.
“Unlike many other media owners today, they are business savvy and willing to take smart risks.”
Vox’s podcast division has a much higher value in acquisitions than New York Magazine, the two people said, emphasizing the importance of locking in the best shows.
Pivot has three years left on his contract, which will continue under Murdoch. Swisher said he met with the investor and his wife several times before the deal went through.
“At a company like Vox, if their talent doesn’t like something, it’s not going to happen,” Galloway said in an interview.
“James is the only Murdoch with whom this deal could happen.”
A few years earlier, James had fallen into a bitter dispute with his father over the editorial direction and future control of the family’s media empire.
He resigned from the board of News Corp, the publishing arm of the family’s media empire, in 2020, citing “disputes over certain editorial content”.
More recently, James and his two sisters, Prudence and Elisabeth, sued their father to block efforts to change the terms of the family foundation, which owns a significant controlling stake in News Corp and Fox Corp.
Under the revised terms, James’ older brother Lachlan would gain control over what is left of the family’s media empire, effectively shutting out James and his sisters.
Before the parties reached a settlement, the bitter probate battle played out in a closed Nevada court.
James and his siblings effectively cashed in their shares in the family foundation and received US$1.1 billion (A$1.5 billion) each.
“I always thought James had great instincts for the digital business, but then Rupert would always step in and ruin everything,” Swisher said, referring to previous failed digital investments.
“And with his father in charge, there was nothing James could do.”
Rupert Murdoch’s representatives did not respond to a request for comment.
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