Axel Springer, the German media conglomerate known for owning Politico, Business Insider, and major German newspapers, has reached a significant deal with private equity firm KKR to split the company into two distinct entities.
This move, announced on Thursday, will divide Axel Springer’s publishing assets from its lucrative classified advertising business.
The deal, which values Axel Springer at approximately $15 billion, assigns about $4 billion to the company’s media properties. The remaining portion, including the classified businesses like StepStone and Aviv, will now come under the control of KKR and CPP Investments. Meanwhile, Mathias Döpfner, CEO of Axel Springer, and Friede Springer, the widow of the company’s founder, will maintain nearly full control of the media business.
This separation allows Axel Springer’s media arm, including its flagship German papers Bild and Die Welt, to operate as a fully private entity, giving Döpfner greater freedom to pursue expansion, particularly in the US market. KKR, meanwhile, will focus on further growing the highly profitable classified advertising division.
Axel Springer’s supervisory board approved the agreement, which comes as a result of a strategic partnership between the company and KKR that began five years ago. Both sides have expressed satisfaction with the outcome, viewing it as a natural evolution for the business.
The New York Post, Axios, Market Watch, and Financial Times contributed to this report.
