German Media Giant Springer To Sell Classified Ads Business

Frankfurt, (APP - UrduPoint / Pakistan Point News - 19th Sep, 2024) German media giant Axel Springer said Thursday it will break up its business by selling off its digital classifieds arm to US and Canadian investors, and focus on its core news outlets.

Under the deal, Springer's billionaire CEO Mathias Doepfner and Friede Springer -- widow of the group's founder -- will assume greater control over the media business.

Its publications include Politico, mass-circulation tabloid Bild, Business Insider and Die Welt daily.

Axel Springer will "become a privately owned and operated news media and media marketing company," Springer said in a statement announcing the deal.

The classifieds business will become separate entities under US private equity firm KKR and CPP Investments, a Canadian pension fund, Springer said.

It includes the job portal StepStone and the Aviv Group with real estate portals such as Seloger in France and Immowelt in Germany.

The transaction is expected to close in the second quarter of 2025, subject to regulatory approval.

The group did not say how much the businesses were worth. But the Financial Times said under the break-up deal, they were valued at 13.5 billion Euros ($15 billion) -- 3.5 billion for the media business, and 10 billion for the classified ads.

"The new corporate structure is designed to position all businesses for optimal future growth potential and success in their respective markets," said the Axel Springer statement.

Doepfner said that under the new structure, "we will have the very best requisites for a great future for journalism".

Friede Springer said her vision had been for Axel Springer to be a "privately owned and operated company. The realisation of this vision now fills me with great joy".

In 2020, KKR acquired 47.6 percent of the German group before it was delisted from the stock market, and then sold part of its stake to the Canadian pension fund, which now owns 12.6 percent of the group.