Business News
Launch of Eastern Europe joint venture: Ringier Axel Springer Media AG becomes operational
Friday 02. July 2010 - Ringier AG and Axel Springer AG have established a new joint media company on 1 July 2010, merging the Eastern European operations of both companies. The new company will be operating under the name Ringier Axel Springer Media AG.
Ringier and Axel Springer have taken a decisive step forward in their proposed joint venture. Less than four months after the announcement in March, the new company was established on 1 July 2010 and immediately became operational. Antitrust authorities in Poland, Serbia, Slovakia, Czech Republic, Switzerland, Germany and Austria have already approved the merger. As expected, the decision of antitrust authorities in Hungary is still pending. Integration of the Hungarian country organizations of Ringier and Axel Springer into the new company is planned as a second step in accordance with the appropriate approval.
The new company has been launched under the name of Ringier Axel Springer Media AG. The name refers to the companys roots in two strong and internationally leading European media houses. During the integration phase which starts now, the parts brought in by the two partners will be merged and the internal structures of the new company developed.
Axel Springer AG and Ringier AG had announced the creation of their joint venture on 23 March 2010. Axel Springer will bring its operations in Poland, Czech Republic and Hungary into the new company, Ringier its operations in Serbia, Slovakia, Czech Republic and Hungary. Headquarters is situated in Zurich. With a turnover of roughly EUR 414 million, an EBITDA of EUR 62 million and about 4,800 employees, Ringier Axel Springer Media AG will be among the largest media companies operating in Eastern Europe. The new company is expected to go public in three to five years. It will be headed by Florian Fels, 43, who most recently served as CEO Central Europe of Ringier AG. Before that, he was Managing Director of Axel Springer Poland for many years. Mark Dekan, 33, will take over as Chief Financial Officer (CFO). He has served as Commercial Director of Finance & Services at Axel Springer AG since 2008.