Axel Springer said that they have agreed to sell its regional newspapers, along with women's magazines and TV program guides, to Funke Mediengruppe. The acquisition price was tagged at EUR900 million or US$1.22 billion. Under the terms of the deal, Funke Mediengruppe will initially pay Axel Springer EUR660 million in cash. For the remaining balance, Axel Springer will grant Funke Mediengruppe a vendor loan which will last for several years. The publisher said that final contract will be signed as soon as Funke Mediengruppe agrees with the financing.
Axel Springer said that they are focusing on expansion for the company's online activities. Axel Springer is one of the first German companies to make the transition from print to digital media. Axel Springer is the publisher of Germany's top-selling daily, "Bild".
"Axel Springer will continue its path toward becoming a leading digital media group, with a clear focus on the 'Bild' and 'Welt' groups," the company's Chief Executive Mathias Doepfner said in a statement.
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