Axel Springer to Sell Stake in Politico to KKR

Private equity firm to acquire majority stake in political news organization

Deal values Politico at $1 billion

Axel Springer is in advanced talks to sell a majority stake in Politico to private equity firm KKR, according to a person familiar with the matter. The deal could be announced as early as this week, the person said.

The transaction would value Politico at about $1 billion, said the person, who asked not to be identified because the talks are private. Axel Springer would retain a minority stake in the company.

Politico is a digital news organization that covers politics, policy, and global affairs. It was founded in 2007 by John Harris, Jim VandeHei, and Mike Allen, and has since become one of the most influential news outlets in Washington, D.C.

KKR is a global investment firm that manages alternative assets, including private equity, credit, real estate, and infrastructure. The firm has invested in a wide range of industries, including media, technology, and healthcare.

The sale of Politico would be the latest in a string of divestments by Axel Springer. The German media company has been selling off non-core assets in recent years in order to focus on its core businesses in Germany.

In 2020, Axel Springer sold its stake in Business Insider to Insider Inc. The company also sold its stake in the classifieds website Scout24 to Hellman & Friedman in 2019.

The sale of Politico would mark a significant shift in ownership for the news organization. Axel Springer has been the majority owner of Politico since 2015, when it acquired the company for $1 billion.