German Media Giants Axel Springer & ProSiebenSat.1 End Merger Talks

MUNICH: ProSiebenSat.1 Media and Axel Springer have abandoned plans for an attempted merger, with the two instead announcing a new joint project aimed at promoting digital startups.

The initiative will focus on promoting innovative digital business ideas and startups in order to enhance Germany's positioning as a digital hub also on an international level. The two companies are planning for joint investments in companies and funds, networking of incubator and accelerator programs as well as media for equity investments.

Dr. Christian Wegner, member of the executive board for digital and adjacent at ProSiebenSat.1, said: "I am delighted that we are working together with Axel Springer, one of the leading German digital players, on initiatives aimed at promoting Germany as a digital hub."

Dr. Andreas Wiele, member of the executive board and president of marketing and classified ad models at Axel Springer, added: "In global competition it has become more important than ever to join forces on a national level wherever reasonable and possible. To this end, ProSiebenSat.1 is our partner of choice given its success in digitization and complementary digital portfolio."