European newspaper publisher Axel Springer AG agreed to sell its printed media including women's and television magazines and regional newspapers to Funke Mediengruppe GmbH for EUR 920 million or approximately US$1.2 billion. Agreement requires Funke to pay EUR 660 million on or before June 30, 2013 and borrow the remaining price from Springer for several years.
The move followed Axel Springer's earlier announcement regarding the company's shift focus from printed to digital media.
"The price looks really good for Springer," commented Bankhaus Metzler analyst Stefan Wimmer, who recommends buying Springer shares, in a telephone interview. "In future, the company will have a stronger focus on digital content and digital classifieds."
The sale agreement will take effect on January 1 and will include titles such as Hamburger Abendblatt, Berliner Morgenpost and TV Digitial, according to the Berlin-based publishing company in a statement released earlier today.
Mathias Doepfner, Axel Springer's Chief Executive Officer for 11 years to date, has resolved to accelerate the company's shift from the declining newspaper industry to classified advertising and digital publications.
The digital media unit contributed the highest share of earnings to company's profit during the first quarter.
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