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DMG Media invests in ProRata as Sky News and the Guardian sign content deals

DMG Media made what it called a significant investment in ProRata, reportedly valuing the AI startup at about $130 million, and gave it access to archives from the Mail, Mail Online, Metro, the i and New Scientist. Guardian Media Group and Sky News also made content available. Licensing fees were not disclosed.

LONDON, November 20, 2024 - DMG Media, owner of the Daily Mail, made a significant investment in AI startup ProRata, and Guardian Media Group and Sky News signed content deals with the company, Press Gazette reported. Licensing fees were not disclosed.1

Terms of the deal

DMG Media said it is the first UK news publisher to take an equity stake in ProRata. The Financial Times reported the investment values ProRata at about $130 million, according to Nieman Lab's summary.12 ProRata gets access to archives from the Mail, Mail Online, Metro, the i and New Scientist. Sky News was reported to be considering an investment as well.1

How publishers are paid

ProRata plans to pay publishers each time their content is used to answer a user query, and to share half the revenue from its forthcoming subscriptions with licensing partners.13 DMG's Rich Caccappolo said the model could be the cornerstone of a sustainable economic model for news publishers.1

Background

ProRata had already signed content deals with the Financial Times, Axel Springer, The Atlantic and Fortune earlier in 2024.4

What it means for data sellers

The deal shows an alternative to flat fees: equity plus a usage-based share. Sellers weighing this structure should ask how usage is measured and whether the buyer's revenue is large enough to make the share meaningful.

This entry is a news summary. SellYourAIData was not involved in the deal.

How the deal came together

  1. DMG Media took an equity stake. DMG Media made a significant investment in ProRata and said it is the first UK news publisher to take an equity stake.
  2. Content access was granted. ProRata gets access to DMG archives from the Mail, Mail Online, Metro, the i and New Scientist, and the Guardian and Sky News also made content available.
  3. Revenue is shared per use. ProRata plans to pay publishers each time content is used to answer a query and to share half of its forthcoming subscription revenue with licensing partners.
  4. Valuation was reported by the FT. The Financial Times reported that the investment values ProRata at about $130 million; stake size and licensing fees were not disclosed.

Takeaways for companies with data

  • Some publishers took equity in the AI company as part of the deal, which ties their return to the buyer's success.
  • ProRata's model pays by use in answers, so income depends on how often content is cited.
  • Fees were not disclosed, so only the valuation and revenue-share mechanism are public.

Sources

Every numbered reference above points to an entry here. Figures come from these pages as of the date shown at the top of the article. Where a source reports a number it got from unnamed people, the text says so.

  1. ProRata AI: DMG Media invests as Guardian and Sky News sign deals (Press Gazette, November 2024)
  2. ProRata AI valued at $130 million after signing up UK publishers (Nieman Lab, citing the Financial Times, November 2024)
  3. Daily Mail owner acquires stake in generative AI startup as Guardian, Sky strike partnership (UKTech News, November 2024)
  4. Universal Music strikes strategic agreement with AI startup ProRata (Music Business Worldwide, August 2024)

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About the AI Data Deal Tracker

SellYourAIData tracks publicly reported sales and licenses of data to AI companies, with the price, terms and sources for each. Entries are checked against public reporting and updated as deals change. SellYourAIData was not involved in this deal. To ask what your company's data could sell for, get a free valuation. To report a deal, contact us.