The media conglomerate News Corp announced on Thursday the purchase of the digital financial news portal Investor’s Business Daily (IBD) for $275 million.
IBD, which features the Investors.com recommendation site, was founded by veteran businessman and investor William J. O’Neil in 1984 and was owned by his firm O’Neil Capital Management.
According to the release, the 130-employee firm will maintain its headquarters in Los Angeles and operate as an independent brand within the Dow Jones subsidiary.
Most of IBD’s revenues and profits come from its investment tools, reports and analysis products, which have gained strong popularity in recent years.
News Corp’s top executive, Robert Thomson, said he expects IBD to leverage its financial competencies “with compelling digital coverage, unique tools and high-performance services.”
“This transformative deal obviously comes as investor interest in equity and debt markets rises and there is a premium on intelligence, knowledge and integrity,” he said.
IBD president Jerry Ferrara said that after “a period of rapid growth and digital innovation, it’s the right time to step up” and the opportunity will allow it to gain scale.
“We are at a unique time where new retail investors are entering the financial markets. They need authoritative resources, quality information and truthful guidance like never before,” he added.
News Corp noted that both Dow Jones and The Wall Street Journal posted record profits last quarter and expects its new purchase to significantly boost profitability.
The conglomerate said it expects to close the acquisition during its fiscal fourth quarter, which ends June 30.