Media

Axel Springer, media group splits in two

The process to separate the media business from the ad (classified) business, which will remain in the hands of Kkr and Cppib, begins

19 September 2024

3' min read

Axel Springer is splitting in two. After rumours in recent months, relaunched last weekend by Ft, an agreement has been reached between US private equity fund Kkr and German billionaire Mathias Döpfner. The result is the division of Axel Springer into two parts, separating the more strictly media activities from the digital assets, including the StepStone job search platform and Aviv, active in the field of real estate.

This digital business has long been present at Axel Springer, the largest publishing group in Germany, with the two historical titles Bild and Die Welt, which were joined over time by the American sites Business Insider (in 2015) and Politico (in 2021).

The final agreement is expected in the coming months, says a note, and the transaction is expected to be finalised in the second quarter of 2025, 'subject to obtaining all necessary regulatory approvals'.

Under the deal Business Insider, Politico, Welt, idealo, Bonial, Morning Brew, Dyn Media, Emarketer and the Ringier joint venture Axel Springer Poland will remain within Axel Springer. Friede Springer and Mathias Döpfner will together hold almost 98 per cent of the company. The Stepstone Group job platform, the Aviv Group real estate ad platform, finanzen.net and Awin will be operated as separate joint ventures with Kkr and Cpp Investments (Cppib) as majority shareholders, Axel Springer as a minority co-shareholder and with an economic participation of Axel Springer's grandchildren

The deal values the company at EUR 13.5 billion, of which more than EUR 10 billion is for the ad business, and, at the end of the day, strengthens Doepfner's control over the company's media. On the other hand, the quid pro quo for Kkr (main shareholder: together with the Canada Pension Plan Investment Board it holds a 48.5% stake) lies in majority control of the profitable ad business.

The separation from the media business comes five years after the US fund joined Axel Springer, followed by delisting in 2020. Mathias Döpfner, the company's current CEO, will retain a minority stake in the ad division, as will vice-president Friede Springer, the founder's widow. Both are shareholders: Friede Springer, the founder's widow, owns 23.5 per cent of the shares while CEO Mathias Döpfner has a personal stake of 21 per cent.

The break-up is also relevant for Döpfner's possible future moves. The idea of targeting the English-language media has long been expressed. The assault on the Financial Times in 2015 went awry (then Axel Springer tacked on Business Insider).

Now the spin-off "marks a new era for Axel Springer, with all businesses set to pursue their respective growth paths in line with their strengths and market opportunities," the German publisher points out in a note. "Since its delisting from the public markets in 2020, the shareholders have provided global expertise and resources and enabled investments of more than EUR 1.9 billion to help Axel Springer accelerate its digital transformation and expand into new markets and adjacent areas, both organically and through significant M&A activities," recalls Axel Springer.

"We have never lost what truly defines us: to be a journalistic institution with clear values. The vision of Mathias Döpfner and myself was that one day Axel Springer would once again become a privately owned and managed company," comments Friede Springer, Vice-Chairman of the Supervisory Board of Axel Springer and Mathias Döpfner, the CEO adds: "Without the excellent and always reliable partnership with Kkr, this would never have been possible. In the new structure, we will have the best prerequisites for a great future in journalism".

Andrea BiondiVicecaposervizio
Luogo: Milano
Lingue parlate: Italiano, Inglese, Francese
Argomenti: Finanza, Media, Telecomunicazioni, Economia dell'entertainment, Innovazione
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