- Axel Springer plans to establish a mergers-and-acquisitions (M&A) team to focus on acquiring artificial intelligence (AI) companies that could disrupt its business models of advertising, e-commerce, and journalism. CEO Matthias Doepfner is particularly interested in AI technology and its potential impact on journalism, a traditional aspect of its business.
- The move into AI acquisitions is part of a broader trend of media companies leveraging the technology to improve their businesses. AI can automate content creation and curation, personalise content for users, and generate insights into audience behaviour and preferences.
- While Axel Springer’s strategy of investing in AI startups could result in growth opportunities, its success will rely on the M&A team’s ability to identify promising companies and successfully integrate them into the company’s existing business operations.
Berlin-based media company, Axel Springer, is reportedly exploring the possibility of acquiring artificial intelligence (AI) companies as it looks to expand its digital business. According to sources familiar with the matter, the German media group’s management has been discussing the potential acquisition of AI firms to help achieve increased efficiency and personalized content.
The move comes as Axel Springer continues to pursue its digital strategy, shifting its focus towards digital content and advertising. The company has been investing heavily in online properties, such as Business Insider, Upday, and Wallstreet: Online, as part of its push to boost its digital revenue.
With AI’s ability to analyze data at an unparalleled scale and speed, the technology has emerged as a key tool for media companies seeking to optimize their digital operations and reach new audiences. By analyzing user data, AI algorithms can help publishers identify content that is likely to resonate with readers, leading to increased engagement and ultimately revenue.
The acquisition of AI companies would also be in line with Axel Springer’s ambitious innovation strategy, which is aimed at bringing cutting-edge technology to its products and services. The company has already made significant investments in data analytics, social media, and mobile technology, and AI is seen as the next logical step in its technology roadmap.
Axel Springer has declined to comment on the potential acquisition of AI companies, but industry insiders expect the company to make a move soon given its aggressive push into digital content and advertising. With its strong track record in identifying and acquiring promising digital startups, it is expected that Axel Springer will be a major player in the rapidly growing AI market.