The apparent convergence of Springer's separation seems imminent.
In 2019, American investment firm KKR bought a stake in Springer and made the company private the following year. Sources claim that Springer and KKR are on the brink of finalizing a separation agreement. A report from Reuters suggests that negotiations have been ongoing since the summer, and an announcement could be made soon.
Sources suggest that Springer CEO Mathias Döpfner and KKR are close to reaching a settlement to divide the media conglomerate. A person familiar with the matter informed Reuters that the deal could be announced as early as next week.
However, several months might still pass before the agreement is officially signed. According to insiders, KKR and the Canadian pension fund CPPIB are planning to exit the media industry. In return, KKR will acquire majority control of the classified ads sector, while Döpfner and his family will retain a minority stake. A spokesperson for Springer refused to comment on the matter, and Reuters was unable to secure statements from the other parties involved.
The Financial Times (FT) reportedly learned of the proposed deal from four insiders, who revealed that the supervisory board will discuss the structure of the deal on Thursday. FT sources claim that the proposed deal has been discussed in several supervisory board meetings. According to insiders, the entire company could be valued at 13.5 billion euros, and the classified ads business alone could be worth over 10 billion euros. However, the final valuation is yet to be confirmed, according to Reuters.
KKR's investment in Springer in 2019 marked the company's largest acquisition to date. Springer's media portfolio includes publications like Bild and Welt, as well as US outlets such as Politico and Business Insider. KKR has supported growth through financial contributions.
Rumors have been circulating in the industry that KKR is considering selling its stake in Springer. According to reports, KKR currently holds 35.6% of Springer, while CPPIB holds 12.9%. It's rumored that any funds released from this potential sale would primarily be invested in the US market and less so in the German media sector, insiders told Reuters in July.
The media coverage of the potential separation between Springer and KKR has been widespread, with various news outlets reporting on the developments. The separation agreement, if finalized, could have significant implications for the media industry.
