Axel Springer Plans Strategic Split to Focus on Digital Media
Image courtesy of : AFP (ODD ANDERSEN)
The Axel Springer Group, a leading German media conglomerate, is set to undergo a significant restructuring. The media division, which includes renowned brands such as 'Bild' and 'Welt,' will remain under the control of Friede Springer and Mathias Döpfner. Meanwhile, the classified ad businesses, featuring companies like Stepstone Group, Aviv, and finanzen.net, will be acquired by KKR and CPP Investments. This move aims to streamline operations and optimize growth potential across different sectors.
Axel Sven Springer, the founder's grandson, will retain a smaller stake in the company. The planned IPO for the job portal Stepstone was postponed due to unfavorable market conditions. The split raises concerns that media companies might lose advertising revenue as they part ways with classified portals. However, Axel Springer intends to pivot towards digital subscription models, moving away from the traditional printed newspaper business.
The strategic partnership with KKR, initiated in 2019, has allowed Springer to accelerate growth through substantial investments. This cooperation is set to end, with KKR and CPP Investments taking majority stakes in the newly formed joint venture. The restructuring is expected to be completed by the second quarter of 2025, pending regulatory approvals.
Axel Springer's acquisition of Politico in 2021 highlighted its ambition to expand internationally, particularly in the United States. The company has a significant presence in New York and aims to grow its influence in the digital media landscape. With around 18,000 employees, Axel Springer is committed to advancing digital journalism and increasing its global reach. The new structure is designed to ensure all business areas are well-positioned for future success.
