German media conglomerate Axel Springer, known for owning the Bild tabloid and U.S. news site Politico, is contemplating a company split with private equity firm KKR, according to sources. The proposed deal would divide the media assets and digital classifieds operations, with the former going to CEO Mathias Doepfner and the founder's widow Friede Springer, and the latter to KKR and the Canada Pension Plan Investment Board.

The Financial Times initially reported the discussions. Sources indicate this plan is the most probable, though many details are still undecided, and the timeline for a decision remains unclear.

Founded in 1946 by Axel Springer, the company has grown into a vast empire with influential right-leaning media titles and a portfolio of classifieds websites, including Stepstone and Aviv. Billionaire Doepfner, who took over in 2002, has recently focused on integrating artificial intelligence, partnering with OpenAI's ChatGPT model.

The split would not necessarily exclude Springer from the profitable classifieds business. Sources suggest that KKR's control of the unit could facilitate its exit from the investment, five years after partnering with Doepfner to take Axel Springer private.

The planned listing of Stepstone, paused due to the Ukraine war and challenging market conditions, is still a possibility. Aviv is also seen as a potential IPO candidate but requires more time.

KKR, which became Axel Springer's largest shareholder in 2019, currently holds a 35.6% stake, while the Canada Pension Plan Investment Board owns 12.9%.