HubSpot, Inc. (HUBS) - Get Report said Wednesday it is acquiring The Hustle, a niche media company producing newsletters, podcasts and research, in a bid to broaden its offerings to entrepreneurs, startups and early stage companies.
Terms were undisclosed. Axios reported the transaction is valued at about $27 million, citing a source familiar with the terms.
"Our customers have started to seek out news and trends-based content across new forms of media like podcasts, newsletters, and research," said Kieran Flanagan, SVP of marketing at HubSpot, in a statement. "By acquiring The Hustle, we'll be able to better meet the needs of these scaling companies by delivering educational, business, and tech trend content in their preferred formats.”
The Hustle has built its subscriber base to 1.5 million since launching in 2016. It’s part of a growing trend of niche media, offering specialized content to targeted audiences. Such platforms can serve as tools to acquire and retain customers, Axios noted, pointing to casino operator Penn National’s recent investment in Barstool Sports.
Shares of HubSpot fell $5.43, or 1.4%, to $390.39 in after-hours trading Wednesday. The stock traded flat in the regular session.
HubSpot is expected to report net income of $11.4 million, or 23 cents a share, on sales of $236.5 million after the market closes on Feb. 11, based on a FactSet survey of 23 analysts.
In the same period a year ago the company posted earnings of 45 cents a share on sales of $186.2 million. It reported a loss of 15 million.
The company offered guidance of $0.21 - 0.23 a share on Nov. 6. Shares have risen 4.1% since then. For the year, analysts project revenue of $867.5 million.