Axel Springer Confirms $11.1 Billion Media/Classifieds Split

Axel Springer has confirmed a major split of its news and classifieds divisions a matter of days after The Financial Times reported a deal was being discussed.

Under the new agreement, private equity firm KKR and investing partner CPP Investments will pay €10 billion ($11.1 billion) to take control of Axel Springer's classifieds business including the Aviv Group.

Meanwhile, the media assets business will be spun off into a new private company controlled by Friede Springer, the widow of Axel Springer, and current CEO Mathias Döpfner, at a valuation of circa €3.5 billion ($3.9 billion).

The company says the decision comes at the end of a fruitful five-year partnership that saw annual revenues increase by 30% to nearly EUR 4 billion. KKR and the Canadian Pension Plan Investment Board have held a 48.5% stake in Axel Springer since 2019.

On the classifieds segment of the business, Axel Springer commented that "strategic acquisitions [such as] Mya Systems and Bayard in the US, MeilleursAgents in France, and Neuraum in Germany have strengthened the company's classifieds capabilities."

The deal appears to be an agreeable outcome for both Springer/Döpfner, and KKR/CPPID, with both parties preferring to focus their time and efforts on their respective segments of the business.

Axel Springer said:

Axel Springer SE (“Axel Springer”) today announced a strategic decision to create a new corporate structure for the company, with a goal to create a focused media company and separately held classifieds businesses. The new corporate structure is designed to position all businesses for optimal future growth potential and success in their respective markets. A final agreement is expected in the coming months. The transaction is expected to close in Q2 2025 subject to receipt of all requisite regulatory approvals.

The Stepstone Group, AVIV Group, finanzen.net, and Awin, pending approvals, will be held as separate joint venture companies with KKR and CPP Investments as majority shareholders, Axel Springer as minority co-shareholder, and with an economic participation by the grandchildren of Axel Springer.

This decision marks a new era for Axel Springer, with all businesses set to pursue their respective growth paths that align with their core strengths and market opportunities. 

The classifieds businesses will continue to independently pursue their respective growth strategies, with strong strategic support from KKR and CPP Investments. Following significant platform and technology investments over the past five years, the businesses are expected to drive increased product innovation to continue providing market leading services for customers.

Aviv Group operates the French market-leading real estate portal SeLoger—and ImmoWeb and ImmoWelt in Germany and Belgium respectively. Other classifieds assets include Yad2, the leading horizontal in Israel, and a minority interest in France-based auto marketplace LaCentrale.