Editor’s Note: The headline for this article has been updated.
According to a new report, German media company Axel Springer is considering an acquisition of The Wall Street Journal, expanding its already significant presence in the United States. The company currently owns Insider, Politico, and other media assets.
What Happened: Axel Springer CEO Mathias Döpfner has plans to grow the publisher in the United States, which comes at a time when media companies are deciding the role artificial intelligence could play in the future of journalism.
A report from Semafor links Axel Springer to interest in acquiring The Wall Street Journal.
Axel Springer recently opened a new headquarters in the United States, which could be a sign of its growing ambitions in the country. A 2023 Economist report also pointed to the media company looking to increase its presence in the United States.
The company could also be looking to spin off assets in Europe, moves that would come as it boosts its U.S. presence, and also to bring a return on investment to KKR & Co KKR, which is the largest shareholder in the company.
Döpfner is also a key owner of around 22% of the company.
Reports of a larger U.S. presence comes as one of the company's key American assets (Insider) is in conflict with leading American investor Bill Ackman.
According to the report, Döpfner pushed to fire Nicholas Carlson, a Business Insider editor, over his coverage of Ackman's wife Neri Oxman.
The report indicates that while Axel Springer has publicly defended its coverage of Ackman's wife, private discussions indicate the company is considering some of Ackman's demands. The conversation centers on whether meeting Ackman’s conditions could circumvent a costly legal battle, with Ackman represented by the defamation law firm Clare Locke.
As the company pursues acquisitions in the U.S., the Ackman issue has the potential to divert significant time and financial resources, potentially impeding the company’s growth in America until the case is resolved.
Why It's Important: The report on Axel Springer also hits on the company's relationship with people close to former President Donald Trump in years past.
Axel Springer worked to maintain a relationship with the Trump administration during his time in the White House.
The media company prides itself in trying to be neutral in politics coverage. A 2022 Washington Post story that showed leaked emails in which Döpfner appeared to express support for the re-election of Trump, seemingly contradicting this stance. Döpfner later said he was being sarcastic.
"All media executives, including Mathias, take meetings and have professional relationships with business leaders, political figures and government officials who hold a wide array of political views – it's part of the job," an Axel Springer spokesperson told Semafor.
Axel Springer also has had a strong relationship with Richard Grenell in the past. Grenell is the former U.S. Ambassador to Germany and considered a potential Secretary of State candidate if Trump is re-elected.
With its past relationships with the Trump administration and potential expansion through further U.S. media acquisitions, Axel Springer may increasingly influence the landscape of American political coverage.
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