financetom
Business
financetom
/
Business
/
Axel Springer, KKR considering split of German media giant, sources say
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Axel Springer, KKR considering split of German media giant, sources say
Jul 12, 2024 5:15 AM

(Reuters) -German media giant Axel Springer, which owns Germany's popular Bild tabloid and U.S. news site Politico, is considering a split of the company together with private equity group KKR, two sources familiar with the matter said on Friday.

A potential deal would separate the group's media assets from its digital classifieds operation, handing the former to CEO Mathias Doepfner and the founder's widow, Friede Springer, and the latter to KKR and the Canada Pension Plan Investment Board, the sources said.

The Financial Times first reported on the break-up talks.

The sources told Reuters that this was the most likely plan but that many details remained open. It was unclear when a decision would be taken, they added.

Axel Springer founded the eponymous company in 1946 and grew it into a sprawling empire encompassing influential right-leaning media titles as well as a portfolio of classifieds websites, including jobs platform Stepstone and real estate ads unit Aviv.

Billionaire Doepfner took the helm of the company in 2002. Most recently he has overseen Springer's ambitions to break into the field of artificial intelligence, including with a partnership with OpenAI's ChatGPT model.

The planned split would not necessarily mean that Springer would be excluded from the highly profitable classifieds business, the sources said.

Taking control of the unit could help pave the way for KKR to begin exiting its investment five years after it partnered with Doepfner to take Axel Springer private, they added.

Springer's planned listing of Stepstone, currently on pause due to the due to the Ukraine war and difficult market conditions, is not off the table, according to the sources.

Aviv is considered another potential IPO candidate but needs more time, they added.

KKR became the biggest shareholder of Axel Springer in 2019 and today own a 35.6% stake in the company.

The Canada Pension Plan Investment Board owns a 12.9% stake.

A spokesperson for Axel Springer, when contacted by Reuters, said all shareholders have been highly satisfied with Axel Springer's progress since 2019, but declined further comment.

A KKR spokesperson told Reuters "together we have made significant progress against Axel Springer's digital and international ambitions, and believe in the continued success and growth of the business".

($1 = 0.9203 euros)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Prairie Provident Resources Announces Closing of Asset Sales
Prairie Provident Resources Announces Closing of Asset Sales
Mar 5, 2024
09:13 AM EST, 03/05/2024 (MT Newswires) -- Prairie Provident Resources Inc. ( PRPRF ) on Tuesday announced that it has closed the previously announced sales of its Evi assets in Northern Alberta for net proceeds of $22.5 million after adjustments, based on an effective date of August 1, 2023, and certain non-core assets located in the Provost area of Central...
Cerrado Gold Signed Option and Loan Agreements With Subsidiary of Hochschild Mining PLC for Sale of Monte Do Carmo Gold Project for Total Consideration of US$60 Million (C$80 Million)
Cerrado Gold Signed Option and Loan Agreements With Subsidiary of Hochschild Mining PLC for Sale of Monte Do Carmo Gold Project for Total Consideration of US$60 Million (C$80 Million)
Mar 5, 2024
09:14 AM EST, 03/05/2024 (MT Newswires) -- Cerrado Gold Inc. ( CRDOF ) earlier on Tuesday entered into an option agreement with Amarillo, a wholly-owned subsidiary of Hochschild Mining PLC, whereby Cerrado has granted to Amarillo the option to purchase a 100% interest in the company's Monte Do Carmo project located in the State of Tocantins, Brazil, for total consideration...
BRIEF-Itron Acquires Elpis Squared For $35 Mln
BRIEF-Itron Acquires Elpis Squared For $35 Mln
Mar 5, 2024
March 5 (Reuters) - Itron Inc ( ITRI ): * ITRON INC ( ITRI ) - ON MARCH 1, 2024, CO COMPLETED ACQUISITION OF 100% OF SHARES ELPIS2, INC * ITRON ( ITRI ) - PURCHASE PRICE FOR ACQUISITION IS $35 MILLION, WITH ADJUSTMENT FOR FINAL WORKING CAPITAL AMOUNT, TO BE DETERMINED 90 DAYS FOLLOWING DEAL'S CLOSE * ITRON INC...
Oscar Properties get observation status on Stockholm bourse
Oscar Properties get observation status on Stockholm bourse
Mar 5, 2024
STOCKHOLM, March 5 (Reuters) - Swedish bourse operator Nasdaq Stockholm said on Tuesday Oscar Properties had received observation status on the Stockholm Stock Exchange. The bourse's rules state that an issuer's financial instruments may be given observation status if there is uncertainty in respect of the issuer's financial position. ...
Copyright 2023-2026 - www.financetom.com All Rights Reserved