Apple agreed to pay nearly $500 million to purchase digital magazine subscription service Texture, according to a new report from The New York Post. The acquisition was first announced a year ago, and last month Apple launched its News+ service largely based on the Texture platform.
The sale price of $485 million included a $100 million up-front payment to four publishers who teamed up to launch Texture — Condé Nast, Meredith and Hearst and Rogers in Canada — plus their venture backer, KKR. Going forward, the four publishers got a minimum of $145 million in the first year, followed by a minimum $240 million for the second and third years — pushing the payout to at least $485 million, Media Ink has learned.
The standalone Texture service is set to shut down on May 28, and customers have been advised to switch to Apple News+. The new service offers access to over 300 magazines and select newspapers for $9.99 per month. There’s also a free 1-month trial for folks who’d like to test it out.
Source: The New York Post