A sign with the lettering of Axel-Springer AG. In the background the main entrance of the Axel Springer high-rise in Berlin-Kreuzberg. (picture alliance/dpa)
The Axel Springer media group, which publishes "Bild" and "Die Welt,” plans to accelerate the digitalization of its publications with the help of new investor, US private equity firm KKR. The partnership will enable Springer to expand its digital journalism and online advertising business in the long term, regardless of short-term profit goals, said CEO Mathias Döpfner during a telephone press conference in Berlin on Wednesday.
With the acquisition of 27.8 percent of the shares in free float by KKR, an important milestone for the strategic partnership with the investor has been reached, he said. The acceptance period for shareholder offers runs until August 21. The deal still has to be approved by the regulatory authorities.
In the first half of the year, group-wide sales fell to 1.53 billion euros from 1.56 billion euros in the same period last year. Springer also suffered a decline in profits due to investments in digitalization and expenses in connection with the takeover offer. On balance, consolidated net income for the period January to June decreased from 185.6 million euros in the same period of the previous year to 133.4 million euros. Net income attributable to shareholders fell from 169.8 million euros to 115.2 million euros.
Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.