Axel Springer, one of Europe's leading media companies, is facing a significant restructuring. The German billionaire Mathias Döpfner and the private equity group KKR are currently negotiating a split of the media conglomerate to separate the media assets from the digital classified ad businesses.

According to insider information, Mathias Döpfner, CEO of Axel Springer, and Friede Springer, the widow of the company's founder, are set to take control of the media holdings of the group. These include the US news sites Politico and Business Insider as well as the German publications Bild and Die Welt.

KKR and the Canada Pension Plan Investment Board (CPPIB), who together hold the largest share in Axel Springer, would take control of the classified ad portfolio, including the job platform StepStone and the real estate ad unit Aviv.

This planned split comes at a time when Döpfner is increasingly trying to expand his influence in the US media. In 2021, Axel Springer acquired Politico for one billion US dollars, the company's largest acquisition to date. As early as 2015, Axel Springer unsuccessfully attempted to buy the Financial Times.

The classified ads business of Axel Springer is growing faster and is more profitable than the media business, increasing its attractiveness for KKR. A takeover of the unit could allow KKR to gradually exit its investment five years after the privatisation of Axel Springer.

Some insiders report that the classifieds business is likely more valuable than the news sites, which is why Döpfner's camp may receive additional cash or a minority stake in the KKR-controlled business. However, these details have not yet been definitively clarified.

A settlement could also enable Döpfner to pursue further acquisitions. According to insiders, the former music journalist has expressed interest in purchasing the Wall Street Journal if it were to be put up for sale.

A spokesperson for Axel Springer, Adib Sisani, did not want to comment on "market rumors." He added that "all shareholders are very satisfied with Axel Springer's progress since the delisting in 2019." KKR expressed a similar sentiment, emphasizing that they "believe in the further success and growth" of Axel Springer.

KKR paid nearly 3 billion euros for a major minority stake in 2019 and partnered with Döpfner to take Axel Springer off the stock market. Later, KKR sold part of its shares to CPPIB, which currently holds 12.9 percent of the shares. KKR and CPPIB, together owning 48.5 percent of Axel Springer, cannot make decisions without Döpfner due to his special governance rights. Döpfner holds about 22 percent of the shares but has voting rights equivalent to twice that amount.

In recent years, Axel Springer has cut jobs in its German media operations and closed several regional offices, while paying out more than 750 million euros in dividends over the past four years.

Axel Springer originally planned an IPO for the job platform StepStone, hoping for a valuation of up to 7 billion euros, but this has not materialized due to a dramatic decline in European IPOs.

The negotiations over the split come at a time when Axel Springer is embroiled in a dispute with hedge fund manager Bill Ackman. In January, Ackman threatened legal action against the company and Business Insider due to plagiarism allegations against his wife.

An internal review by Axel Springer found that Business Insider's reporting on the plagiarism allegations against academic Neri Oxman was accurate and "well-documented.