Germany's Bertelsmann (BTGGg.F) said on Monday it would take full ownership of Gruner + Jahr, publisher of magazines including Stern and Brigitte, as the German media conglomerate looks to speed up a late push into digital media.
Europe's largest media company, which also controls broadcaster RTL Group AUDK.LU and co-owns book publisher Penguin Random House (PSON.L), said in a statement it would buy the 25.1 percent stake of Jahr Holding for an undisclosed price.
Publishers are shifting to digital publishing as their readers increasingly use smartphones and tablet computers to consume news and information. German rival Axel Springer's (SPRGn.DE) digital business now accounts for more than half its revenue and two-thirds of core profit.
Gruner + Jahr, which made revenues of 2.1 billion euros ($2.6 billion) in 2013, said in August it planned to cut up to 400 jobs as it seeks to reduce annual costs by 75 million euros to combat a downturn in the print media market.
"Gruner + Jahr's shareholders are united in the belief that the company's future offers great opportunities in the digital world," Bertelsmann said in a statement. "All stakeholders believe that these opportunities can be even better exploited under a new ownership structure."
Bertelsmann will pay for in cash for the remaining stake in Gruner + Jahr, which made operating EBITDA of 193 million euros in 2013 and has 8,562 employees.
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