German billionaire Mathias Döpfner and KKR are nearing a deal that would split Axel Springer, a multinational mass and online media giant in Germany.
The split would break Axel Springer's fast-growing classifieds unit from its news businesses, Bloomberg reported citing people with knowledge of the matter.
The news outlet revealed that the parties are planning to disclose the matter as soon as this week. Final details are still being worked on, and the negotiations may either fall apart or get delayed.
Financial Times was the first one that reported about the deal, which could value the whole company at $15 billion. It also includes more than €10 billion for the fast-growing classifieds business.
Two people who knew about the deal said that it has been discussed numerous times in several board meetings. It was also in July where talks of a split surfaced.
According to the FT, the deal would allow Döpfner to strongly establish his control over the media outlets of the company including Politico and Business Insider, two U.S. news sites, which the company bought within the last decade.
Axel Springer's media division was also one of the first big media brands to strike a deal with Sam Altman's OpenAI, agreeing to a three-year deal to let the generative AI company use its news articles and content.
It is very likely for Döpfner to keep a minority stake in the classifieds division. This would include the advertising unit Aviv and the jobs platform StepStone. KKR would then be the one to gain a bigger control of the classifieds unit.
The split would take the burden off the shoulders of both KKR and Canada Pension Plan Investment Board (CPPIB) from controversies surrounding the new business of Axel Springer. Some of the issues that hounded the company include allegations of sexual harassment by Bild's former editor. Aside from this, Döpfner has also been the subject of accusations, particularly of engaging in editorial interference.
Rumors about the split of Axel Springer have been around for months. If this happens, it could spell the end of the partnership of Döpfner and Friede Springer, which lasted for almost five years. Springer, the widow of the founder, controlled the company for years after his death and took the company private by teaming up with KKR.
Axel Springer has remained influential in Germany. it owns the country's best-selling newspaper Bild tabloid, as well as the Die Welt broadsheet.
The 61-year-old billionaire Döpfner remains as one of the board of directors of Netflix and Warner Music Group.
