German billionaire Mathias Döpfner and private equity group KKR are in talks to split Axel Springer, separating its media assets from its digital classifieds business.
Under the proposed deal, Döpfner and Friede Springer would gain more control over media properties, including Politico, Business Insider, Bild, and Die Welt.
KKR and the Canada Pension Plan Investment Board, the largest shareholders, would control the classifieds portfolio, which includes StepStone and Aviv.
This potential split aligns with Döpfner's efforts to expand influence in US media, following Axel Springer's $1bn acquisition of Politico in 2021.
The classifieds business is more profitable and faster-growing than the media segment, and this separation could allow KKR to begin exiting its investment made in 2019.
According to reports, the deal's details are still being negotiated, with possibilities including Döpfner’s camp receiving cash or a minority stake in the classifieds unit.
Axel Springer had considered an IPO for StepStone, targeting a €7bn valuation, but a slowdown in European listings stalled it.