Mathias Döpfner, CEO of the media conglomerate Axel Springer, and the private equity giant KKR are on the verge of an agreement that could strengthen the German billionaire's position to consolidate his control over significant media brands like Politico and Bild. According to insiders, the potential split of the conglomerate is expected to be discussed at a supervisory board meeting next Thursday.
KKR, which acquired a 48.5% stake in Axel Springer in 2019 together with the Canada Pension Plan Investment Board (CPPIB), plans to take majority control of the company's lucrative classifieds business. This includes platforms such as StepStone and the real estate advertising division Aviv. The group is valued at a total of 13.5 billion euros, with more than 10 billion euros attributed to the classifieds sector.
The separation from Axel Springer marks the end of a turbulent partnership between KKR and the Berlin media house. Initially, KKR had planned to sell StepStone through an IPO, but the endeavor was repeatedly postponed as European IPOs recently weakened.
For Döpfner, who has been serving as CEO since 2002, the spin-off would mean that he further solidifies his control over Axel Springer's media activities. In addition to Politico and Business Insider, the company's portfolio also includes the tabloid newspaper Bild and the daily newspaper Die Welt. According to the negotiations, Döpfner and Friede Springer, the widow of the company's founder and the company's vice-chairwoman, are expected to retain minority stakes in the classified ad business.
The split of the company occurs at a time when Axel Springer was confronted with a series of scandals. These included allegations of sexual harassment against a former editor-in-chief of Bild, as well as accusations of editorial interference by Döpfner himself. KKR also recently faced controversy after Business Insider raised plagiarism allegations against the wife of hedge fund manager Bill Ackman.
Mathias Döpfner, who maintains close relationships with global business magnates such as Elon Musk and serves on the board of Netflix and Warner Music Group, continues to pursue expansion into the English-speaking media market. After the failed attempt to acquire the Financial Times in 2015, he purchased Business Insider and acquired Politico for around 1 billion US dollars in 2021.
