Sources: Amazon, DraftKings showed interest in buying The Athletic

Amazon, Conde Nast and DraftKings "showed interest" in acquiring The Athletic before it was bought by the N.Y. Times, and private-equity firm TPG was the Times’ "biggest rival in The Athletic sweepstakes," according to sources cited by Alex Sherman of Sources said that before its sale, The Athletic looked into "raising more capital, but the cost of financing and further dilution to the founders and other investors" pushed co-Founder & CEO Alex Mather and co-Founder & President Adam Hansmann in the "direction of selling." Still, sources said that several investors and advisors close to the company "privately urged Mather and Hansmann not to sell." Sources said that Mather and Hansmann "did have other plans," as in The Athletic’s early days, they "looked into merging with Nate Silver’s to combine sports and politics, and toyed with the idea of partnering or merging with America’s Test Kitchen, bringing together food and sports under one roof." Now The Athletic wants to "expand into podcasts and digital video and push the envelope in digital forms" (, 1/14).

NEW COMPETITION: MEDIUM's Aron Pilhofer wrote by purchasing The Athletic, which covers 270-plus sports teams in more than 47 local markets, the Times has "placed itself in direct competition with every local news site for the same pool of subscribers." And since the "average number of news sites people will pay for is one," that is "very bad news indeed for local legacy news organizations." The Times has a "major challenge on its hands to make The Athletic work financially," and it needs "more subscribers." The Athletic has about 1.2 million active subs, which means it has "grown by about 20,000 per month" since '19. Pilhofer: "That’s not nothing, to be sure. But is it the kind of growth The Times likely has in mind after dishing out a half-billion dollars for the property? I kind of doubt it" (, 1/7).

SBJ Spotlight: TikTok’s threat to traditional sports media

While tech companies are consumed with finding ways to compete with TikTok, almost no one in conventional media “spends any time talking about it,” said Recode senior correspondent Peter Kafka in an Spotlight interview with SBJ’s John Ourand. “To me, that’s just an obvious disconnect.” Kafka authored a recent column headlined, “It’s TikTok’s world. Can TV live in it?” He said the main response to TikTok’s growth from traditional media execs has been to “punt and hope it’s someone else’s problem a quarter from now or two years from now.” But Kafka said that ignores the trend of conventional broadcast audiences growing older while a billion younger consumers spend most of their media time watching short video after short video. “If you’re in the business of getting anyone under the age of 30 to look at what you’re putting on a screen, you have to think about the fact that you’re probably asking them to put down TikTok and watch your thing instead,” said Kafka. “That’s a very difficult ask. … [TikTok] is insanely addictive.”

SBJ Morning Buzzcast: June 29, 2022

BioSteel makes a major move with the NHL, while the USFL looks for additional investors.

SBJ Unpacks: Thaddeus Young, NBA forward and venture capitalist

SBJ's Austin Karp posted up with NBA power forward Thaddeus Young. The 15-year veteran discussed his venture capital strategy, his investment in technology and much more.

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