Tuesday, October 19, 2021
Biggest deal in the company’s history
Springer completes acquisition of Politico
The Axel Springer group has come under massive criticism for ex-“Bild” boss Reichelt. The headlines made it to the United States. Nevertheless, the publisher has now succeeded in completing the largest takeover in the company’s history: The US media group Politico is now flying under the Springer flag.
The media group Axel Springer has completed the purchase of the US media group Politico. Springer announced: “The transaction was successfully completed upon receipt of all necessary regulatory approvals and in accordance with the terms of the agreement announced on August 26, 2021.”
Springer wants to grow faster in its digital businesses. The acquisition of the US media group Politico is, according to the Berlin media company, the largest takeover in the company’s history. Springer sees a growth market in the USA. The group is now 100 percent owner of the US media group. Springer bought the company from Politico founder Robert Allbritton. A purchase price was not mentioned. Before the takeover was completed, US media reported a purchase price of over one billion dollars (around 860 million euros).
The flagship of the US media group is the digital journalistic brand of the same name, Politico, which primarily reports on political issues. Springer boss Mathias Döpfner said of the deal: “We have always firmly believed that there can be successful business models for digital journalism.” Politico is a prime example. “The strong growth and high profitability combined with a diversified sales base are proof of the company’s success. We will work together to further increase Politico’s growth potential and expand its international offering.”
Deal despite “Bild” scandal
In the US, Springer already owns the news brands Insider and Morning Brew. With the transaction that has now taken place, Springer now also has all shares in Politico Europe in Brussels in its portfolio. Springer and Politico have been running the joint venture since 2014, in which they each had a 50 percent stake. Politico Europe employs around 200 people. The deal also includes the tech news website Protocol, which is a sister publication to Politico and was founded in 2020.
The deal came about despite the latest information about the former Springer journalist and “Bild” editor-in-chief Julian Reichelt. With a view to the plans to take over the US media group Politico, the “New York Times” published a long report on the media group Axel Springer at the weekend.
The article dealt among other things with “abuse of power against women and other abuses” at Axel Springer and above all by the previous “Bild” boss Reichelt. The media group then released Reichelt from all of his duties.