Insider Inc. – the company that owns Business Insider and other publications - is close to acquiring a controlling stake in Morning Brew, according to The Wall Street Journal. The deal, as it stands now, would value Morning Brew at $75m.
Why it makes sense:
- Morning Brew would give Insider a direct way to generate new subscribers – an immediate connection to the 1.8 million people who receive its daily morning newsletter. That email has an open rate of 42%, higher than the industry average of ~20%.
- Email newsletters can often charge more for advertising, as a user who clicks open an email is considered more engaged than one surfing the web.
- Morning Brew is profitable, according to the WSJ, and is on track to meet its revenue goal of $20m this year.
Axel Springer SE, the German conglomerate that owns Insider Inc., reportedly won't try to incorporate Morning Brew into its other media offerings. Morning Brew has 3 million total subscribers across its business newsletters.