German media giant Axel Springer announced on Thursday that it struck a deal to purchase digital media site Politico for more than $1 billion, stepping up its efforts to grow its portfolio in the United States.
In a press release, Springer said that the deal will make it acquire about 50 percent of what the company does not own yet in Politico Europe and its tech news sibling Protocol.
“Axel Springer and POLITICO in the U.S. have been joint venture partners since 2014, when they launched POLITICO Europe,” the German media conglomerate said in a statement. “The Brussels-based publication has since become an indispensable source of information in the EU and has continuously grown both its newsroom and its revenues and has been profitable since 2019.”
While both companies are not yet disclosing specific details and terms regarding the agreement, a source who spoke on condition of anonymity said Springer agreed to pay more than $1 billion to acquire Politico.
The agreement is set to close in the fourth quarter of the year.
“POLITICO’s outstanding team has disrupted digital political journalism and set new standards… It will be a privilege and a special responsibility to help shape the future of this outstanding media company,” Axel Springer Chief Executive Mathias Döpfner said in a press release.
“Objective quality journalism is more important than ever, and we mutually believe in the necessity of editorial independence and nonpartisan reporting. This is crucial for our future success and accelerated growth,” Döpfner added.
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