The Axel Springer Group has announced plans to split its operations. This move will separate the company’s media brands from its job and real estate portals, marking a significant restructuring for the German media giant.
Separation of media and digital businesses
Axel Springer, the publishing company founded in 1946, is set to divide its operations. According to an announcement made on Thursday, the media business, which includes brands like “Bild,” “Welt,” and “Politico,” will remain under the full control of Springer CEO and major shareholder Mathias Döpfner and the Springer family. However, the majority stake in the more profitable classified advertising business, which includes job portals (Stepstone) and real estate (Aviv), will be held by US financial investor KKR and the Canadian pension fund CPP Investments.
Döpfner and publisher’s widow Friede Springer will retain a minority stake – not specified in terms of percentage – in this division. Friede Springer, 82, stated, “It has always been a clear plan that Axel Springer would one day become a family business again. I am overjoyed that this vision is now becoming a reality.”
Timeline and financial implications
The deal is expected to be finalized in the coming months, with the entire transaction set to be completed in the spring quarter of 2025, subject to approval from antitrust authorities. It was announced that Axel Springer will be debt-free following this restructuring.
KKR initially invested in Springer in 2019 and took the company private in 2020 after 35 years on the stock market. The valuation of Springer five years ago was 6.8 billion euros, which has now doubled to around 13.5 billion euros, according to insider information. The lion’s share of this value, approximately 10 billion euros, is attributed to the job and real estate portal business.
Henry Kravis, co-founder of KKR, commented on the deal: “After a long and successful partnership, this natural next step for the Axel Springer Group is a great outcome for all stakeholders involved.”
