JUST IN: Politico to Be Sold to Publishing Group Axel Springer for Amount Reportedly Near $1 Billion
Screenshot via Politico on Facebook.
Politico is being acquired by German publishing group Axel Springer for an amount reported to be near $1 billion.
Business Wire distributed the companies’ joint press release on Thursday, writing, “Axel Springer signed an agreement to acquire POLITICO, including the remaining 50 percent share of its current joint venture POLITICO Europe, as well as the tech news website Protocol from Robert Allbritton.”
CNN’s Brian Stelter additionally reported that the deal’s ballpark figure is $1 billion:
Breaking: Axel Springer is about to announce that it is acquiring Politico. $1 billion is the ballpark figure…
— Brian Stelter (@brianstelter) August 26, 2021
According to the New York Times, the deal would result in a large premium for Politico, as they generate roughly $200 million a year in revenue.
“That would make it one of the most expensive media mergers in recent memory,” reported the NYT’s Edmund Lee. “A $1 billion deal would amount to five times Politico’s yearly sales.”
The Wall Street Journal first reported the talks between the two sides.
This is not the first media company Axel Springer has made a deal with. The German publishing group had previously acquired Business Insider for roughly $500 million in 2015, and as of last year, owns a controlling stake in newsletter publisher Morning Brew.
Politico has also teamed up with Axel Springer in the past, becoming joint venture partners in 2014 during the launch of Politico Europe, a profitable Brussels-based publication.
“POLITICO’s outstanding team has disrupted digital political journalism and set new standards. A true North Star. It will be a privilege and a special responsibility to help shape the future of this outstanding media company,” said Mathias Döpfner, CEO of Axel Springer said in the press release. “Objective quality journalism is more important than ever, and we mutually believe in the necessity of editorial independence and nonpartisan reporting. This is crucial for our future success and accelerated growth.”
Founder and Publisher of Politico and Protocol, Robert L. Allbritton, also released a statement, saying, “My 15-year adventure with POLITICO has been the ride of a lifetime. I reach this milestone with a sense of satisfaction that I hope is shared by every POLITICO. Together we have built what is without a doubt the most impressive and most enduring of the many experiments in new publications over the past generation. Particularly in recent years, we have put the emphasis on doing rather than boasting, and what multiple competitors have aspired to—a consistently profitable publication that supports true journalistic excellence—we have achieved.”
“As I have often said, I would only welcome a new investor that reflected my values and POLITICO’s distinctive company values,” he added. “Axel Springer and Mathias Döpfner and his team meet that test better than any other company in media today. I look forward to working with them as publisher of POLITICO and Protocol as we reach even greater heights.”
Allbritton, according to the release, will remain on as publisher of Politico and Protocol.
