Ringier and Axel Springer plan joint venture in Switzerland
The media companies Ringier and Axel Springer are planning to establish another joint venture in which both companies will hold equal stakes. A letter of intent to that effect has already been signed.
On the one hand, all Swiss-German and West Swiss magazine titles of Ringier, including their associated online offerings, as well as the West Swiss newspaper Le Temps, are to be brought into the company, and on the other hand, the company Axel Springer Schweiz, in which the entire Swiss business of Axel Springer is bundled. The company is to operate under the name Ringier Axel Springer Medien Schweiz and have its headquarters in Zurich. Ringier is consolidating the planned company.
With the new company, the partners want to significantly improve their competitiveness in the Swiss reader and advertising market and, in particular, push the digitization of their well-known brands, according to a statement. By joining forces in this way, Ringier and Axel Springer plan to extend their existing, successful partnership in Eastern Europe to the Swiss business as well. Since the founding of Ringier Axel Springer Media in July 2010, which includes the businesses in Eastern Europe, the share of digital business, which was only seven percent at the start of the joint venture, has increased more than fivefold. Currently, the digital share of revenues of the Eastern Europe joint venture is 36 percent.
The designated CEO of the planned joint venture is Michael Voss, and Ralph Büchi, President International of Axel Springer, is to take over as Chairman of the Board of Directors. Michael Voss, currently CEO Publishing and Entertainment of Ringier, would retain his area of responsibility and remain a member of Ringier's Group Executive Board, but relinquish the management of the Blick Group and all board mandates at the digital subsidiaries.
Marc Walder, CEO Ringier and Vice Chairman of the planned joint venture Ringier Axel Springer Medien Schweiz: "This planned shoulder-to-shoulder merger with Axel Springer in Switzerland makes sense both from a journalistic and a business perspective. The complementary portfolios of both companies include excellently positioned publications. Our existing joint venture in Eastern Europe shows how strongly both parties can benefit from such cooperation."
Ralph Büchi, President International, Axel Springer: "The planned Swiss joint venture forms an excellent basis for the long-term successful further development of the strong media brands of Ringier and Axel Springer in German-speaking and French-speaking Switzerland, both for the print titles and the digital offerings."
The details for the final contractual agreement will be worked out in the coming weeks. The transaction is subject to the approval of the supervisory bodies of the two companies and the competition authorities.
The portfolio of the planned joint venture includes the following titles:
Ringier: Schweizer Illustrierte, SI Style, Gault&Millau, GlücksPost, Schweizer LandLiebe, Bolero, BoleroMen, TVtäglich (Ringier share), L'illustré, L'Hebdo, L'HebdoMen, TV8, Edelweiss, Le Temps.
Axel Springer: Beobachter, Beobachter Natur, Tele, TVStar, TV vier, TV2, Handelszeitung, Bilanz, PME Magazine, trade journals (Schweizer Bank, Schweizer Versicherung), Wirtschaftsnetz Online, Amiado Group (Students.ch, Usgang.ch, Partyguide.ch).
