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Axel Springer and KKR near deal on $13.5bn break-up

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Axel Springer and KKR near deal on .5bn break-up

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German billionaire Mathias Döpfner and KKR are nearing a deal to split up the media giant Axel Springer, in a move that would allow one of the world’s largest private equity firms to bow out of news media after five turbulent years. 

The two sides are expected to discuss the proposed structure of a deal that would give KKR majority control of the company’s profitable classifieds business at a meeting of its supervisory board on Thursday, according to four people familiar with the matter.

The deal — which values the whole company at €13.5bn, including more than €10bn for the classifieds business — has already been discussed several times at previous board meetings, two of the people said.

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The Financial Times first reported the pair were in talks about a split in July.

A deal would enable Döpfner, who has served as CEO since 2002, to cement his control over the company’s media outlets. They include the US news sites Politico and Business Insider as well as the German tabloid Bild and its broadsheet sister Die Welt.

Döpfner is expected to keep a minority stake in the classifieds division, which includes jobs platform StepStone and real estate advertising unit Aviv. So too is Friede Springer, the company’s vice-chair and widow of its founder.

The break-up of Axel Springer would mark a new chapter in a five-year partnership in which KKR took the company private in 2019 in a deal that valued the publisher at €6.7bn. Together with the Canada Pension Plan Investment Board (CPPIB), it owns a 48.5 per cent stake in the Berlin-based business.

KKR would gain greater control over the classifieds unit, paving the way for the New York-based firm to exit its investment. It had previously hoped to launch an initial public offering for StepStone, securing a valuation of as much as €7bn, but that plan has been repeatedly postponed after a slump in European listings.

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The split would also free KKR and CPPIB from the succession of controversies that have plagued Axel Springer’s news business. These include allegations of sexual harassment by a former editor of Bild and accusations of editorial interference by Döpfner.

Most recently, KKR was dragged into a bitter row between the hedge fund boss Bill Ackman and Business Insider after it published claims of plagiarism against his wife.

The break-up comes as 61-year-old Döpfner, who sits on the boards of Netflix and Warner Music Group and has forged a friendship with Elon Musk, seeks to expand his footprint in the English-language media market, particularly in the US. 

He unsuccessfully tried to buy the Financial Times in 2015, instead buying Business Insider later the same year. In 2021, he acquired Politico for a price tag of around $1bn.

Axel Springer and KKR declined to comment.

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Firefighters Brace For More Santa Ana Winds As Los Angeles Palisades and Eaton Fires Continue To Burn | Weather.com

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Firefighters Brace For More Santa Ana Winds As Los Angeles Palisades and Eaton Fires Continue To Burn | Weather.com
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  • At least 24 have been killed in wildfires throughout Los Angeles County.
  • Red flag warnings are issued for early this week, meaning dangerous fire conditions are expected.
  • The fires combined have burned more than 62 square miles.

T​he death toll is up to 24 as wildfires continue to burn in Los Angeles County. The Palisades Fire is being blamed for eight of those deaths, while the Eaton Fire is responsible for 16 fatalities. According to the Los Angeles County Sheriff’s office, missing persons reports have been filed for 16 individuals. The number of missing and the number perished could both rise, according to officials.

F​irefighters who spent the weekend keeping four large fires in check are now bracing for more Santa Ana winds which could stoke the flames and cause new fires to flare up.

The National Weather Service has posted red flag warnings through Wednesday, meaning severe fire conditions are expected. Gusts from 45 mph up to 70 mph are expected, with the worst of the weather coming on Tuesday morning through noon Wednesday.

(​MORE: Intense ‘Firenado’ Spawned By Palisades Fire)

Homes along the Pacific Coast Highway are seen burned by the Palisades Fire, Sunday, Jan. 12, 2025, in Malibu, California.

(AP Photo/Mark J. Terrill)

Seventy additional water trucks were sent to the county to help with any surging flames in the coming days, and fire retardant dropped from the air will block fires along hillsides, officials said.

“We are prepared for the upcoming wind event,” Los Angeles County Fire Chief Anthony C. Marrone said, according to the AP.

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About 150,000 people in Los Angeles County are under evacuation orders. Officials said that evacuation orders in the Palisades area will likely stay in place until the red flag warnings expire Wednesday evening.

In total, the four blazes have consumed more than 62 square miles, an area larger than San Francisco, The Associated Press reported. T​he Palisades Fire, which has burned more than 37 square miles, according to CalFire, has consumed more than 1,000 structures. The fire was 13% contained early Monday morning. The Eaton Fire, at 27% containment early Monday, had consumed more than 22 square miles and more than 1,400 structures.

T​he Hurst Fire is now 89% contained after burning a little over one square mile.

More than 14,000 personnel, including firefighters from California, nine other states and Mexico, have been responding to the fires.

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Newsom Suspends State Environmental Rules for Rebuilding After Fires

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Newsom Suspends State Environmental Rules for Rebuilding After Fires

Governor Gavin Newsom has signed a broad executive order that aims to make it easier to rebuild after the fires by suspending California’s costly and time-consuming environmental review process for homeowners and businesses whose property was damaged or destroyed.

The order is likely to be the first of several permit streamlining measures issued by state, county and city agencies in the wake of the devastating fires across greater Los Angeles.

Mr. Newsom’s three-page order, signed Sunday, covers all of Los Angeles and Ventura Counties and directs state agencies to coordinate with local governments to remove or expedite permitting and approval processes during rebuilding. The most significant piece is a waiver on permitting requirements under the California Environmental Quality Act — a landmark environmental law known colloquially as C.E.Q.A. or “See Qua.”

The governor also announced that he had suspended all permitting requirements under the California State Coastal Act for properties rebuilding after the fires.

California is one of America’s most difficult and costly places to build — a driving factor behind the state’s longstanding affordable housing shortage. Between state agencies and local land use commissions, the process of developing buildings, from office complexes to subsidized rental complexes, is longer and more expensive than in almost every other state.

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Of all the hurdles a project can be subjected to, few are more difficult and time-consuming than C.E.Q.A. The law often requires developers to fund in-depth environmental studies on a project’s potential impact on everything from local wildlife to noise, views and traffic. Groups who oppose a particular development often use C.E.Q.A. lawsuits to try to stop them. This can add years even to small projects.

While the state’s powerful environmental groups are fiercely protective of any attempts to amend C.E.Q.A. or the Coastal Act, the laws are routinely suspended in emergencies and for large projects such as sports stadiums.

Still, Mr. Newsom’s order was unusually extensive. For instance, after other disasters C.E.Q.A. suspensions have typically required rebuilding property owners to show they tried to comply with the law, even if they weren’t subjected to it. The order announced Sunday is a full waiver: For anyone rebuilding after the fires, C.E.Q.A. is effectively gone.

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California fires could be costliest disaster in US history, says governor

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California fires could be costliest disaster in US history, says governor

The California wildfires could be the costliest disaster in US history, the state’s governor said, as forecasts of heavy winds raised fears that the catastrophic blazes would spread further.

In remarks to NBC’s Meet the Press on Sunday, Gavin Newsom said the fires — which have burnt through more than 40,000 acres, according to CalFire, the state’s forestry and fire protection department — would be the worst the country has seen “in terms of just the costs associated with it, [and] in terms of the scale and scope”.

He added that there were likely to be “a lot more” fatalities confirmed. The death toll on Saturday evening stood at 16, according to Los Angeles authorities.

The prospect of a pick-up on Sunday in the Santa Ana winds that have fanned the flames has left tens of thousands of residents under evacuation orders. The fires were threatening homes in upscale Mandeville Canyon and the Brentwood neighbourhood, although officials said they had made progress in stemming the advance there.

The National Weather Service has forecast gusts of between 50mph and 70mph, while drought conditions remain.

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“We know that elevated critical fire conditions will continue through Wednesday”, Los Angeles County fire chief Anthony Maroney said on Sunday.

LA is experiencing its second-driest start to its rainy season in more than a century, according to the non-profit Cal Matters news service. Halfway into the season, LA has only recorded about 0.2 inches of rain since October -— well below the 4.5 inches that is common by January.

Newsom, a Democrat, responded to a barrage of attacks from Donald Trump. The incoming Republican president has accused the governor of depleting water reserves to protect an endangered species of fish, and of refusing to sign a “water restoration declaration” that would have “allowed millions of gallons of water . . . to flow daily into many parts of California”. Newsom’s office has said no such declaration exists.

Trump, who has a long-standing feud with Newsom and refers to him as “Newscum”, also called on the Californian to resign, accusing him of “gross incompetence”.

“The reservoirs are completely full, the state reservoirs here in Southern California,” Newsom said.

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The charred remains of a jewellery store and other shops at a corner of Sunset Boulevard © Michael Nigro/Bloomberg
An air tanker drops fire retardant at the Palisades Fire © Ringo Chiu/Reuters

“That mis- and disinformation I don’t think advantages or aids any of us,” he added. “Responding to Donald Trump’s insults, we would spend another month. I’m very familiar with them. Every elected official that he disagrees with is very familiar with them.”

Newsom also said he had invited the president-elect to visit the affected areas, but had yet to receive a response from the Trump transition team.

Firefighters have tamed three fires since Tuesday, including the Sunset blaze that threatened the Hollywood hills. The Hurst fire in the San Fernando Valley, north of Los Angeles, was 80 per cent contained on Sunday afternoon.

But firefighters are still struggling to tame the two biggest blazes. Newsom said on social media platform X that the Palisades and Eaton fires were 11 per cent and 27 per cent contained. Thousands of firefighters have been deployed to battle the Palisades fire with heavy trucks and air support, the mayor’s office said Sunday. The city has also opened shelters to affected families.

The Federal Emergency Management Agency (Fema) has staff in LA to help Angelenos apply for disaster relief, while the Federal Small Business Administration is offering home and business disaster loans.

Newsom issued an executive order that he said would prevent those who lost their homes from being “caught up in bureaucratic red tape” so they could quickly rebuild.

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The head of Fema on Sunday raised the prospect of US troops being sent to Los Angeles to help control the blaze.

“There are active-duty military personnel that are on a prepare-to-deploy order, that are ready to go in and continue to support the firefighting effort,” Deanne Criswell told ABC’s This Week programme. Speaking on CNN, she warned that strong winds expected in the coming days could spread the fire further.

Map showing the perimeters of the fires in LA and evacuation orders and warnings currently in place

No official estimate of the cost of the damage has yet been released, but analysts at AccuWeather last week calculated the economic loss to be between $135bn and $150bn — short of the $250bn cost associated with last year’s Hurricane Helene. At least 12,300 structures had been destroyed, according to CalFire.

President Joe Biden on Thursday pledged that the US government would pay for “100 per cent of all the costs” created by the disaster, and would ask Congress for more financial aid.

Trump, who on the campaign trail last year threatened to withhold disaster funding from California, has thus far remained silent on whether he would provide similar assistance. On Sunday, he renewed his attacks on the state’s officials.

“The incompetent pols have no idea how to put [the fires] out,” he wrote. “There is death all over the place. This is one of the worst catastrophes in the history of our country. They just can’t put out the fires. What’s wrong with them?”

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