July 11 (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".

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