German writer in deal to purchase US website Politico – Pasadena Star Information

Reuters

Axel Springer will acquire Politico as part of a deal that valued the U.S. political news website at over $ 1 billion, according to a source familiar with the matter.

The companies announced the deal on Thursday but did not provide any information on the terms. For Axel Springer, this was the largest acquisition to date, as the German publisher bundles a global network of digital news businesses.

The deal, in which Springer will also buy the remaining 50% of its Politico Europe joint venture, follows the acquisition of Business Insider in 2015 and the acquisition of the majority stake in the Morning Brew business newsletter platform in 2020.

Politico owner Robert Allbritton will continue as editor of the website following the transaction, which is expected to close by the end of this year.

Politico was founded by defectors from the Washington Post prior to the 2008 US presidential election with the aim of covering Washington and politics with the pace, analysis, and rigor of sports journalism.

Springer has an extensive portfolio of news agencies, including Bild, Welt and Insider, and is active in more than 40 countries.

The US private equity investor KKR, which holds around 48% in Springer, is building its portfolio of digital and media assets through the German media group.

Separately, two people familiar with the matter told CNBC that Springer was no longer in talks to buy Axios, a digital news agency founded by Politico co-founder Jim VandeHei.

Springer and Axios declined to comment.

Subrat Patnaik, Tiyashi Datta, Kenneth Li, Krystal Hu and Klaus Lauer contributed to this report

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