KKR Grabs the Best of Axel Springer

Smart money and digital media don’t always mix well. Just ask KKR. Five years after the private equity firm, together with the Canada Pension Plan, bought a roughly 49% stake in German media giant Axel Springer, parent of Business Insider and Politico, the two investors are fleeing the scene.

That might be hyperbolic. Technically what’s happening is that Axel Springer is breaking in two. KKR and the Canadians will walk away with about 85% of Axel’s classified ads business, the most profitable part of the company. The media properties, which also include German newspaper Bild, will stay behind in the existing company. Axel Springer will become 100% owned by Axel Springer CEO Mathias Döpfner, vice chair Friede Springer and Axel Sven Springer, a grandchild of the founder. KKR and the Canadians seem to be getting the better part of the deal.