Benzinga, a news and media outlet covering the financial stock market, just welcomed a majority stake acquisition from Beringer Capital. The deal, announced on Monday, Oct. 25, was valued at $300 million.
“Benzinga is just entering the second inning of what we will build,” said Jason Raznick, Founder and CEO of Benzinga, in the press release.
Partnering with Beringer Capital — a private equity firm specializing in digital media, marketing, and technology companies — will streamline Benzinga’s mission to provide individual investors with comprehensive information about the stock market.
Read on to learn more about what the future holds for Benzinga — and what this acquisition means for the company’s subscription offering.
Beringer and Benziga: The Recipe for Success
On the early morning of Oct. 25, Jason Raznick jumped on a live interview with CNBC to discuss the news of the $300 million acquisition from Beringer Capital.
What started out as a basement operation with only a few remote workers has now turned into an organization with more than 100 staff and personnel delivering valuable content. Raznick launched Benzinga.com after identifying an opportunity to shine some light on a niche within the stock market: small cap stocks. The major stock-market news organizations were reporting predominantly on “the Facebook’s and the Google’s of the world,” Raznick said at Recur in 2018.
Benzinga’s coverage spans multiple sectors, including traditional financial markets, politics, cannabis, cryptocurrencies, and sports betting, according to the press release.
The company now sees nearly 25 million readers monthly — spanning 125 countries — according to the press release, and is integrated in every major online brokerage, such as Robinhood.
“Benzinga’s authentic voice” in the industry impressed Beringer Capital, according to the press release. In an effort to add more value to its subscription offering, Benzinga, alongside Beringer Capital, will incorporate additional forms of media, improvements in user experience, deeper coverage of the stock market, and more.
Beringer Capital is “looking forward to building on this impressive trajectory, collaborating closely with its team on exciting new offerings that empower more investors to take control of their financial futures,” said Perry Miele, Chairman and Managing Partner at Beringer Capital, in a Benzinga article.
A Seized Subscription Opportunity
With a steady stream of traffic, Raznick sought discernment in whether Benzinga was really valuable to readers, so he introduced a subscription component early on: Benzinga Pro.
Benzinga Pro reports real-time stock market information. Through keyword searches, custom filters, inside access from traders, real-time news alerts, and more, Benzinga has positioned itself as one of the largest news outlets for the stock market.
The idea behind launching Benzinga’s subscription service was that, “If someone is willing to give you their hard-earned money for your product, you’re doing something right,” he said.
With the help from Beringer Capital, Benzinga plans to experiment with “targeted subscription offerings so investors can get what they want, when they want,” Raznick told SUBTA. Raznick’s greater mission with Benzinga Pro is to ensure that subscribers are satisfied daily and receive the best opportunities for financial success.
Benzinga’s Growing Position in the Subscription Industry
Despite retaining a significant stake and role in the company, Raznick emphasizes consistently that he doesn’t consider himself the founder of Benzinga; rather, he considers himself the co-founder alongside all of its customers. “In the subscription economy, every customer is your owner,” he said at Recur.
Benzinga focuses on creating an elevated subscription experience for its readers. The company regularly gathers feedback from subscribers to determine areas for improvement and growth, such as whether an article was helpful or not.
In light of this acquisition, Benzinga pledged to stay at the forefront of various trends to keep providing unparalleled value to its audience. In a heartfelt letter to Zingers — Benzinga’s readership community — the company promised that “the Benzinga you see today will be radically different and even more value additive 12 months from now.”
By seizing opportunities and scaling growth, Raznick and his company have proven that even the smallest niches can lead to monumental success in the subscription space.
“It was fun to be excited for [Raznick],” said Paul Chambers, CEO and Co-Founder of SUBTA. “He’s just a good guy that’s deserving of it and the great success. I remember him trying to pitch Benzinga at Startup Weekend and nobody wanted to work with him on the idea that year. He found a way to get it done on his own after and the rest is history.”
Key Takeaways:
- Benzinga closed a majority-stake acquisition with Beringer Capital for $300 million on Oct. 25.
- Together, Benzinga, and Beringer Capital will incorporate additional forms of media, improvements in user experience, deeper coverage of the stock market, and more.
- Benzinga has reached nearly 25 million readers monthly since its launch in 2010.
- Jason Raznick, Founder of Benzinga, will retain a significant stake and role in the company.
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