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gettyimages.comAxel Springer Split Up Deal
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According to reports from Fortune, German billionaire Mathias Döpfner and private equity firm KKR are nearing a deal to split up media giant Axel Springer in a transaction that would value the company at €13.5 billion ($15 billion).
Deal Structure and Valuation
The proposed deal structure would grant KKR majority control of Axel Springer's profitable classifieds business, valued at over €10 billion
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. This segment includes the jobs platform StepStone and real estate advertising unit Aviv1
. The arrangement is expected to be discussed at a supervisory board meeting scheduled for Thursday, with the topic having been addressed in previous board meetings3
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.4 sources
Key Players Involved
At the center of this high-stakes negotiation are two key figures: Mathias Döpfner, the German billionaire who has served as Axel Springer's CEO since 2002, and KKR, the private equity firm that took the media company private in 2019
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. Döpfner is expected to retain a minority stake in the classifieds business while tightening his control over the company's media outlets, which include prominent publications such as:
- U.S. news sites: Politico, Business Insider, and a majority stake in Morning Brew
- German publications: Bild (tabloid), Die Welt (broadsheet), and Fakt13
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.3 sources
Implications for Axel Springer and KKR
This strategic split would enable KKR to exit the news media business while retaining control of the highly profitable classifieds segment
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. For Axel Springer, the deal represents a significant increase in valuation, from €6.7 billion when KKR took it private in 2019 to the current €13.5 billion1
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. The arrangement would allow Döpfner to strengthen his influence over the company's media outlets, potentially shaping their editorial direction2
. However, the deal also raises questions about the future of Axel Springer's diverse media portfolio and how it might be managed under this new structure.3 sources
KKR's Historical Context
American global investment company
Founded
1976
Founders
Jerome Kohlberg Jr., Henry Kravis, George R. Roberts
Headquarters
30 Hudson Yards, New York City, U.S.
In 2019, KKR took Axel Springer private in a deal that valued the publisher at €6.7 billion
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. This initial investment has seen a significant return, with the current proposed breakup deal valuing the company at more than double that amount. The private equity firm's strategy of acquiring and restructuring media companies is evident in this transaction, as it seeks to capitalize on the profitable classifieds business while divesting from the more volatile news media sector2
.2 sources
Related
What was KKR's initial strategy when it acquired Axel Springer in 2019
How has KKR's investment in Axel Springer evolved over the years
What are the key factors driving the breakup of Axel Springer
How does this deal compare to other recent media acquisitions by KKR
What role did Mathias Doepfner play in the negotiations with KKR
