Apple reportedly paid at least $485 million to acquire the Texture subscription service, which serves as the underlying core to the Apple News+ service. The transaction is thought to have acquired in early 2018.
The launch of the Apple News+ subscription has resulted in Apple preparing for the closure of Texture to all users, a move it will be performing on May 28. While terms of the deal have not been disclosed in the time since the purchase, it is believed in one report to be at or above the value of $485 million.
The transaction is through to have included an up-front payment of $100 million collectively to publishers Conde Nast, Meredith, Hearst, and Rogers in Canada, as well as venture backer KKR.
The deal also allegedly provides the publishes with a minimum of $145 million in the first year, followed by at least $240 million in the second and third years. It’s unknown how the funds will be split between all parties.
Apple is currently in the process of trying to convert current Texture users over towards Apple News+, its $9.99 per month subscription service, before the app closes its doors. While current user counts are unknown, it is thought Texture had around 240,000 subscribers at the time of the March 2018 purchase.
It’s also thought that 30 percent of the 240,000 subscribers were believed to be Windows and Android device users, who must switch over to Apple’s platforms if they wish to subscribe to Apple News+, due to a lack of apps for other mobile operating systems.
Via AppleInsider and the New York Post