Chat with us in Facebook Messenger. Find out whats happening in the world as it unfolds.
DOJ warns anonymous author: Do not release book
Walsh: Americans listening to Fox News are lied to daily
Mulvaney denies quid pro quo, blames press language
Farrow explains controversial book on Matt Lauer and NBC
Kate McKinnon as Sen. Warren REALLY puts on a show
Stelter: I want to debunk a left-wing conspiracy theory
See shocked reactions live on Fox after Smith drops bombshell
CNN blocked from asking NBA players about China fallout
Comics hit Trump for claiming not to know Giuliani contacts
Trump may have lost key ally in conservative media
Fox News host blasts Trumps move: Are you kidding me?
Matthew Broderick makes fun of Mike Pompeo on SNL
London (CNN Business)US private equity giant KKR wants to take the owner of Business Insider private in a deal that values the European publishing company at nearly $8 billion.
on Wednesday offered investors in Axel Springer 63 ($71.40) per share in a deal that has support from the companys largest shareholder, Friede Springer, and CEO Mathias Döpfner.
The offer values the Berlin-based company at 6.8 billion ($7.7 billion). The price is a 12.5% premium over Tuesdays close and an increase of nearly 40% from late May, when talks between the companies were first reported.
Axel Springer, which owns a range of publications, including top German tabloid newspaper Bild and thewebsite Business Insider, has been underintense pressurefrom investors in recent months.
The publisher said Wednesday that it expects revenue for the current financial year to decline in the low single-digit percentage range. It also expects profit to fall.
Axel Springer said tougher economic conditions and the introduction of a digital tax in France forced the company to change its forecast.
The world just moved closer to the biggest corporate tax overhaul in a century
Friede Springer, the widow of founder Axel Springer and owner of 42% of the company, said in a statement that partnering with KKR would allow for new investments.
Our journalistic principles and our corporate culture remain the foundation on which we build and in which we trust, she said. KKR would be a good partner who sees this the same way.
Döpfner, the CEO, said in a statement that going private will allow the publisher to shift its focus away from short-term financial targets. He plans new investments in people, products, technology and brands.
Berenberg analyst Sarah Simon said in a research note that going private could increase Axel Springers flexibility, especially if it seeks to acquire more classifieds businesses, such as parts of eBay. EBay said in March it isconsidering a spinoffof its classifieds business.
We believe that management is taking the right approach: indeed, we believe that additional spending is crucial to the long-term future of the business, Simon wrote.
Axel Springer also operates a 50-50 joint venture that publishes the European edition of Politico.
KKR is no stranger to media investments. In February, it bought Tele Mnchen Group, one of Germanys largest television production companies.