(Source – reuters)
Axel Springer, the German media giant, will undergo a significant split, separating its media and classifieds businesses under an agreement between CEO Mathias Doepfner and private equity firm KKR. The deal, announced Thursday, strengthens Doepfner’s control over major news outlets like Bild and Politico, while handing ownership of its profitable classifieds division to KKR and Canada’s CPP Investments.
Splitting the Media Empire
Under the terms of the deal, Axel Springer’s media assets will remain under the control of Doepfner and the Springer family, including Friede Springer, the widow of the company’s founder Axel Springer. Meanwhile, the lucrative classifieds segment, which includes popular platforms like job portal Stepstone and property site Aviv, will become a separate entity under the majority ownership of KKR and CPP Investments.
This move comes as the two sides reached a summer agreement to divide the company, which sources value at around €13.5 billion ($14.95 billion). Of this, the classifieds business accounts for a substantial portion, valued at approximately €10 billion. This figure is nearly double the valuation when KKR first became a strategic investor in Axel Springer five years ago, just before the company delisted from the stock market in 2020.
Axel Springer expects the split to be finalized within the next few months, with the transaction set to close by the second quarter of 2024.
Plans for Expansion and IPOs
Axel Springer’s classified division, including its crown jewel Stepstone, had been eyeing an initial public offering (IPO) before plans were postponed due to the war in Ukraine. Now, with KKR and CPP Investments taking majority ownership, industry insiders expect Stepstone to go public in the second half of 2025. Aviv is also seen as a future IPO candidate, though sources suggest it is not yet ready for such a move.
Founded in 1946, Axel Springer evolved from a post-war publishing house into one of Germany’s most influential media groups. Its flagship tabloid Bild remains the country’s most-read newspaper, even in the digital age, with a daily circulation nearing one million by the end of 2023. The media giant has also expanded internationally, particularly in North America, acquiring the political news platform Politico for $1 billion in 2021 as part of its strategy to grow its influence across the Atlantic.
The split solidifies Doepfner’s hold over these key media assets while enabling KKR and CPP Investments to focus on growing the classifieds business. This division of assets represents a new chapter for Axel Springer, as it seeks to balance its traditional media roots with the fast-growing digital classified segment.
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