The Strategist

Axel Springer buys Politico for $1B

08/27/2021 - 07:02

German media concern Axel Springer announced purchase of the American publication Politico from its founder Robert Allbritton.

The company did not disclose the financial terms of the deal, but according to American media reports citing sources, the transaction amounted to $1 billion. Axel Springer is buying the publication Politico in full, including a 50% stake in its European business (the other 50% owned by the German media concern and previously), as well as a news site about technology Protocol. The deal is expected to be completed in the fourth quarter.

With this purchase, Axel Springer, which among others publishes the German newspapers Bild and Die Welt, is expanding its brand portfolio in the United States. Earlier, the company had already bought the U.S. business publication Insider (formerly called Business Insider) and the Morning Brew newsletter service. In 2014, Axel Springer formed a joint venture with Politico - it dealt with the European version of the publication. Now, with the purchase of the U.S. and European versions of Politico and Protocol still run by their current executives, they will operate independently of Axel Springer's other American titles, and Mr. Allbritton will remain their publisher.

Politico was founded by Mr. Allbritton in 2007. The publication is devoted to political news, and, as observers note, it has always had its own style, focusing a lot on elections and legislative activity, at the same time running a popular blog with short posts on the subject and was known for its newsletters. Politico employs about 500 people.