KKR and Axel Springer agree to split up the media conglomerate

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Private equity firm KKR and German billionaire Mathias Döpfner to separate Axel Springer’s classifieds business

Private equity firm KKR and German billionaire Mathias Döpfner have made a significant deal that will reshape the landscape of media and classifieds businesses. The two entities have agreed to separate Axel Springer’s classifieds business from its media properties, marking a major shift in ownership and operations.

KKR, which helped fund and expand Axel Springer’s media business over the past five years, will officially exit the media sector with this deal. This move will make Axel Springer a fully privately owned and operated media company for the first time since its IPO in 1985.

The numbers behind the deal are impressive, with KKR taking Axel Springer private in a 2019 deal valuing the company at €6.7 billion. KKR and CPPIB, Canada’s largest pension fund, currently own a 48.5% stake in the company. The classifieds business alone is valued at more than €10 billion, according to the Financial Times, and the agreement would value the entire company at €13.5 billion.

Moving forward, Döpfner and Friede Springer will control 98% of Axel Springer’s U.S. and European media properties, including well-known outlets like Politico, Business Insider, Bild, and Die Welt. Axel Sven Springer, a grandchild of the company’s founder, will retain the remaining shares. Döpfner will serve as the CEO of the new media company.

This deal comes on the heels of Axel Springer’s recent acquisitions, including Politico and Morning Brew, as well as investments in AI media startups like Particle and ProRata.ai. With a focus on digital sources and a strong U.S. presence, Axel Springer is poised for growth and innovation in the media industry.

The separation of KKR from Axel Springer’s news business marks a significant shift in the industry, with KKR co-founder Henry Kravis calling it a “natural next step” after a successful partnership. Despite some controversies in the past, Axel Springer is looking towards a bright future under the leadership of Döpfner and Springer.