Axel Springer is selling the digital ad sector
German media group Axel Springer plans to separate its media and digital advertising sectors.
The media sector will become a family business owned by the widow of founder Frieda Springer and CEO Mathias Dopfner, and will be completely separated from the advertising sector, which will be bought out by American and Canadian investors.
The media sector, which includes outlets such as Politico, Business Insider, Bild and Die Welt, is expected to be 98% owned by Springer and Dopfner, marking the first time since their initial public offering (IPO) in 1985 that they have in family ownership, foreign news agencies report.
The split will bring changes to the strategic partnership that has existed for years with American financial investor Kohlberg Kravis Roberts (KKR).
The digital ads division, which includes online recruitment portal StepStone and digital real estate company Aviv Group, including real estate portals such as Seloger in France and Immowelt in Germany, will be spun off as an independent company with a new ownership structure, with KKR as the majority owner. and Canadian pension fund CPP Investments.
Estimated value of 13.5 billion euros
As explained by Axel Springer, which employs around 18,000 people, the new structure is being introduced in order to optimize all business areas and ensure further potential for growth.
The media industry has been predicting a split between Springer and KKR for some time. Springer concluded a strategic cooperation with KKR to accelerate growth through investments at the end of 2019, and in 2020 KKR took over 47.6% of the German group. That year, the company delisted after approximately 35 years. KKR then sold a 12.6% stake to CPP Investments.
It is not officially known how much the Axel Springer media group is worth, but The Financial Times estimates that it is about 13.5 billion euros, with more than 10 billion spent on classified ads. If these figures are correct, Axel Springer has more than doubled its value compared to the period before the merger with KKR.
The work still needs to be approved by the competent regulator, and it is expected to be completed in the second quarter of 2025.
Source: Capital
Photo: Pixabay
Source: bizlife.rs
