Puck in advanced talks with RedBird for a deal valuing it around $250M
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Puck, the subscription newsletter and events business, is in late-stage talks with private investment firm RedBird Capital Partners about a deal that would see RedBird becoming its largest shareholder, sources confirmed to Axios.
Why it matters: The deal, which values Puck at roughly $250 million, would set a strong industry benchmark for other media startups looking to liquidate.
By the numbers: Puck raised more than $17 million since it launched in 2021.
- It acquired Air Mail, another subscription email startup with overlapping investors, in a cash-and-stock deal worth $16 million last year. Air Mail had raised more than $30 million across two funding rounds.
- Neither Puck nor Air Mail were profitable at the time of the transaction, Axios reported.
- Puck was on track to make more than $20 million in revenue this year, with the majority coming from ads and sponsorship sales. The company had nearly 50,000 paid subscribers at the time.
Follow the money: A deal valuing the combined Puck and Air Mail business at $250 million would suggest the transaction was valued at a relatively high multiple of the combined company's revenue.
- That's notable given how many digital media startups have seen their valuations collapse in recent deals.
How it works: The deal, according to a source familiar with the terms being discussed, would see RedBird buying out the shares of Puck's existing shareholders, which include private investment groups Standard Investments (an investment arm of Standard Industries), TPG, and J Rothschild Capital Management.
- RedBird would become the largest private investor in the company. Employees would retain their shares.
- In a statement, a spokesperson said "Puck is in advanced discussions about a strategic recapitalization to accelerate growth that would make RedBird our leading investor."
- "Puck's journalist-centric model, commitment to premium I.P., direct audience relationships, and journalistic independence are at the core of its business model and that will not change," they added.
- Reuters was first to report about the advanced discussions between RedBird and Puck.
Of note: RedBird was an early investor in Air Mail, alongside Puck investors Standard Investments and TPG. It became an investor in Puck when Puck acquired that business.
Zoom out: RedBird has been involved in several major media deals over the past few years.
- The company made a strategic investment in Front Office Sports (FOS), a digital sports business news company, in 2023, and became a majority shareholder in 2024.
