Ziff Davis, a digital media subsidiary of tech company J2, is buying Mashable for less than $50 million, according to people familiar with the transaction. In the spring of 2016, Time Warner’s Turner led a $15 million investment round that valued the company at $250 million.
Last month, the Wall Street Journal reported that a deal was in the works.
Mashable’s new owners plan on keeping the site running but want to refocus the company on tech and tech-lifestyle content. That will mean laying off about 50 of the site’s employees and offering other Mashable employees jobs at other Ziff Davis publications, according to a source familiar with the company’s plans, who says founder Pete Cashmore will stay with the company.
Ziff Davis specializes in running low-cost publishers that generate a significant amount of their revenue from “affiliate commerce” — usually executed via in-text links which pay the publisher when a reader clicks on the link, or buys something after clicking on the link. Last year, the company made a bid for the Gawker Media sites when those properties were in a bankruptcy auction.