Morning Brew's journey began 8 years ago when two college students, Austin Rief and Alex Lieberman, set out to curate business news in a unique and engaging format. Fast forward to the present, and Morning Brew boasts an impressive 4 million subscribers to its free newsletter, capturing the attention of millennial readers with its bite-sized, impactful insights.
In 2020, Insider Inc. which is the parent company of Business Insider closed an all cash deal to buy a majority stake in Morning Brew. The company is now projected to DOUBLE their profit on a substantial $50 million revenue this year alone, a testament to its strong appeal and effective business model.
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The acquisition discussions, highlight Business Insider's strategic vision to diversify its offerings. Established as a digital publisher with a mix of clickbait and scoops, Business Insider has more recently pivoted toward a focus on high-quality journalism that it aims to monetize through subscriptions. By integrating Morning Brew's vast subscriber base into its ecosystem, Business Insider could potentially tap into a new stream of paying subscribers, strengthening its market position.
While the financial details of the deal remain undisclosed, insiders suggest that Morning Brew's founders have their sights set on a figure north of $50 million, and possibly even surpassing $75 million.
The potential acquisition also spotlights the media industry's renewed fascination with email newsletters. In an era dominated by social media and instant updates, newsletters have emerged as a reliable and engaging method to connect with audiences directly.
Axios, a politics-focused startup, has capitalized on this trend, generating a remarkable $58 million in revenue largely through its popular newsletters. Additionally, Substack has redefined the relationship between writers and readers, bringing renowned authors like Andrew Sullivan and Casey Newton into its fold.
This potential acquisition is not just about financial gains and market strategies; it's also a story of perseverance, innovation, and adaptability. Morning Brew's journey from a college experiment to a multi-million dollar revenue-generating business underscores the limitless possibilities of the digital age. It's a testament to the power of creativity and the determination of young entrepreneurs to disrupt and redefine traditional industries.
See Interest over time on Google Trends for email marketing – United States, Past 5 years here. For the month of August, we will be exploring email marketing, best autoresponder for newsletters and showcasing our top email mailing services that allows you to get started quickly with growing your newsletter.
