Axel Springer does a Schibsted and splits media from classifieds. I’d expect more consolidation of the latter now. Possibly even with the former Schibsted classifieds. https://t.co/BqvefVX9st
— Björn Jeffery (@bjornjeffery) September 19, 2024
Axel Springer, the German media giant that owns Politico, Business Insider, and several German newspapers, announced on Thursday that it will split into two separate companies. The media operations will be controlled by Friede Springer, the widow of the company’s founder, and CEO Mathias Döpfner. The classified advertising business will be taken over by the private equity firm KKR and CPP Investments.
📰From @FT: "German billionaire Mathias Döpfner and KKR are nearing a deal to split up the media giant Axel Springer, in a move that would allow one of the world’s largest private equity firms to bow out of news media after five turbulent years."https://t.co/OMvm0r7zyT
— Reuters Institute (@risj_oxford) September 18, 2024
The deal values Axel Springer at around $15 billion, with the media assets worth about $4 billion, according to a source familiar with the negotiations. Döpfner and Friede Springer will hold nearly 98 percent of the media company, with the remaining shares held by Axel Sven Springer. “Before we began our partnership with KKR five years ago, Friede Springer and I had an idea of how the company could ideally look like down the road,” Döpfner said in a statement.
“That vision is now close to becoming reality.”
Axel Springer is splitting into two separate organizations, making Mathias Döpfner "the undisputed magnate of a transcontinental media empire," @BenMullin and @LaurenSHirsch report. https://t.co/BWPiAFywnW
— David Gura (@davidgura) September 19, 2024
The Stepstone Group, AVIV Group, finanzen.net, and Awin will operate as separate joint venture companies, with KKR and CPP Investments holding the majority shares.
Axel Springer company split details
Axel Springer will retain a minority interest.
The transaction is expected to close in the second quarter of 2025, subject to regulatory approvals. Henry Kravis, the co-founder of KKR, said the deal was a “natural next step” for Axel Springer and “a great outcome for all stakeholders involved.”
Founded in 1946 by Axel Springer in Hamburg, the company has grown to become Germany’s most influential media group. Friede Springer consolidated control over the business after her husband’s death in 1985 and later transferred power to Döpfner, who has been CEO since 2002.
In recent years, Axel Springer has expanded into North America, aspiring to become a major publisher in the US. The company acquired Politico in 2021 and has seen significant growth, with annual revenue increasing by 30 percent to nearly 4 billion euros over the past five years. The newly structured media company will focus on pursuing long-term growth and innovation in independent, AI-empowered journalism.
Operating as a debt-free, privately owned entity, Axel Springer aims to strengthen its market position and shape the future of journalism.
- DW.”Germany: Axel Springer splits media, classified businesses”.
- NYTimes.”Axel Springer Strikes Deal With KKR to Split Up Publishing Giant”.
- AxelSpringer.”Axel Springer Announces New Corporate Structure to Unlock Future Growth Potential”.