Axel Springer, KKR near $13.5 billion break-up deal

German publisher Axel Springer and investment firm KKR are nearing a $13.5 billion break-up deal to split up the media giant, the Financial Times reported.

Both sides will discuss at a supervisory board meeting on Thursday the proposed structure of a deal that would give KKR a majority of the control over the company’s profitable classifies, people familiar with the matter told the outlet.

The deal values the entire company at $13.5 billion, including more than $10 billion for the classifieds business.

The split has already been discussed and the Financial Times first reported the talks in July.

If they come to a deal, it would allow German billionaire Mathias Döpfner to have control over the company’s media outlets, which include Politico and Business Insider, as well as German publications.

The split would free KKR from controversies that have plagued Axel Springer’s business, including allegations of sexual harassment and editorial interference, the outlet reported.

Axel Springer bought Politico in 2021. The price of the sale was not disclosed but reports suggested the deal was for upward of $1 billion. The company bought Business Insider in 2015.