News Corp Australia has today acquired digital finance news group Stockhead, as part of a strategic investment strategy, with The Australian marking the occasion via a 12-page print insert and stories published on News.com.au and across state-based mastheads.
Stockhead, founded in 2017, has built a successful financial information and commercial content business specialising in small cap companies listed on the ASX, after company founders David Greer and Jonathan Younger identified the lack of attention on the sector as a significant market gap.
Stockhead’s revenue model is based on content marketing rather than traditional banner advertising, with commercial content identified as advertising at the bottom of each article to distinguish it from independent editorial content.
Stockhead will retain its own brand, management structure, and all existing staff.
News Corp Australasia’s executive chairman Michael Miller said Stockhead was an attractive investment on two key fronts.
“Stockhead’s recognised financial information content combined with a thriving content marketing portfolio makes it a very neat and attractive fit for our business,” Miller said.
“The high net worth investors and audience who value The Australian Business Review for the latest in business news and information, analysis and insights will benefit enormously from this extended and specialised coverage.”
Miller noted the investment follows similar investments News Corp Australia has made in content marketing players including a majority stake in Australia’s largest full service video production company, Visual Domain, last year.
Stockhead chief executive David Greer said he welcomed the opportunity to join forces with News Corp Australia.
“This investment allows us to take our business to a new level to benefit both our clients and our audience,” Greer said.
“We’ve spent several years assembling a team of 25 specialists to follow more than 1900 gold explorers, cancer fighters, pearl farmers, drone manufacturers and infant formula makers focused on making their big breakthrough.
“These small-cap companies represent a vital slice of Australian entrepreneurial life overlooked for too long.”
In March, News Corp appointed Tom Pitney to the new role of strategy director to accelerate growth of the company’s commercial content business.
Last year, US and ASX-listed News Corporation (News Corp) reported a jump in revenues to US$2.50 billion, an 18% increase compared to $2.12 billion in the prior year, and a net income of US$267 million, up from US$47 million in the prior year, for the three months ended 30 September 2021.