(Reuters) - The New York Times Co has agreed to buy subscription-based sports site the Athletic in a deal valued at around $550 million, the Information reported on Thursday, citing a person familiar with the situation.
The Athletic brought in $47 million in revenue in 2020 but was forced to cut staff and pay during the early months of the pandemic when most live sporting events were suspended, the report said.
The company projected last fall 2021 revenue of $77 million, with cash burn at $35 million, according to the report.
The New York Times and the Athletic did not immediately respond to Reuters requests for comment.
The deal will help expand the New York Times' digital offerings as the 170-year-old paper zeroes in on its subscription-first business model that helped it weather steep declines in advertising and print readership.