O’Neil Capital Sells IBD to News Corp

News Corp has agreed to acquire Investor’s Business Daily from O’Neil Capital Management for $275 million.

Investor’s Business Daily (IBD) was founded as Investor’s Daily in 1984 by William J. O’Neil. IBD operates the Investors.com website which reaches almost 11 million unique visitors each month.

According to News Corp, a majority of IBD’s annual revenues and profits come from the company’s investor tools, research and analysis products, and it has experienced double-digit revenue growth over the past several years, with digital representing more than 90% of IBD’s revenues.

IBD has nearly 100,000 digital subscribers across its platforms and publishes a print edition once a week. IBD, led by CEO William S. O’Neil and President Jerry Ferrara, has 130 employees and is headquartered in Los Angeles.

After the closing of the transaction – expected by the end of June 2021 – IBD will continue to be based at its headquarters in Los Angeles and will operate as a stand-alone brand as part of News Corp’s subsidiary Dow Jones, the publisher of The Wall Street Journal, MarketWatch, Barron’s and numerous other publications, products and news sites.

“The prospect of combining our collective skills and strengths, especially our shared legacies of trusted, rigorous journalism and research, opens up a wide range of potential,” said Almar Latour, the chief executive officer of Dow Jones. “It creates exciting possibilities to grow quality at scale, diversify our tailored digital offerings and forge even deeper connections with the professional and retail investment communities.”

“IBD will greatly enhance our e-expertise in finance, with compelling digital coverage, unique tools and high-yielding services. We will be able to cross-sell and up-sell with Dow Jones financial products and provide specialist insights for a knowing business audience,” said Robert Thomson, the chief executive officer of News Corp. “Dow Jones and the Wall Street Journal reported record profits in the last quarter, and I have no doubt that IBD’s savvy digital products and journalism will significantly bolster profitability at the Dow Jones segment. This transformative deal obviously comes as investor interest is surging in stock and bond markets and there is a premium for intelligence, insight and integrity.”

New York-headquartered News Corp  (NASDAQ: NWS) was created in 1980 by Rupert Murdoch as a holding company for News Limited which was founded in 1923 in Adelaide, Australia. In 1949, Sir Keith Murdoch took control of News Limited and his son Rupert inherited a controlling interest in the business in 1952. In 2012, the company split into two publicly traded companies, News Corp and 21st Century Fox.

Canaccord Genuity (TSX: GF) was the financial advisor to O’Neil Capital Management on this transaction. The firm is a full-service investment banking and financial services company that specializes in wealth management and capital markets. The firm provides mergers and acquisitions, corporate finance, restructuring, debt advisory and strategic advice for corporate, government and private equity clients globally.

Los Angeles-based O’Neil Capital Management, the seller of IBD, is a family office with investment interests in asset management, real estate, printing, digital media, brokerage, investment advisory, and information technology services.

© 2021 Private Equity Professional | March 30, 2021

Print Friendly, PDF & Email