ProSieben and Axel Springer in merger talks

axel_springer_logoTwo of Germany’s biggest media businesses, ProSiebenSat.1 and Axel Springer, are in talks about a combination that could improve their ability to compete with US digital heavyweights such as Google and Facebook.The talks — a revival of a decade-old ambition to merge the two companies — are at an early stage, according to people familiar with the matter. They said there was no certainty an agreement would be reached or that it could overcome competition concerns. Both companies declined to comment.

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Analysts however were sceptical about the value of ProSieben, the bigger of the two companies, partnering a business that still relies heavily on newspapers and magazines. Such a move would run counter to the media industry trend of separating print from television businesses.

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