I Squared and Blackstone Explore Partnership for Ströer Assets
I Squared Capital is partnering with Blackstone on a potential offer for Ströer SE’s core advertising business, according to a report by Bloomberg as cited in Private Equity Wire. This marks a renewed push into the German media group after an earlier attempt stalled, with the firms recently in talks about acquiring Ströer’s out-of-home advertising operations, which include digital content assets. I Squared previously explored a bid earlier this year but withdrew in January due to insufficient investor support, and the latest approach comes as Ströer’s share price has declined further, valuing the company at roughly €2bn.
Market Reaction and Valuation Insights
Shares in Ströer jumped as much as 9.4% on Monday, marking their strongest intraday performance in six months, and closed up around 3% in Frankfurt. Some market participants believe Ströer’s out-of-home division could be valued at €3.5bn or more in a potential transaction, though the consortium has not yet decided whether to pursue a carve-out of the advertising unit or a broader bid for the entire company. These discussions occur amid ongoing uncertainty at Ströer’s senior management level, with co-chief executive Christian Schmalz signalling he will not extend his contract beyond 2028 and chief financial officer Henning Gieseke considering an exit.
Early Stage of Talks and Company Challenges
People close to the process stressed that talks remain at an early stage and there is no guarantee a formal offer will be made, with both firms and Ströer declining to comment. Ströer executives have acknowledged that separating the billboard business presents structural complexities, particularly around how the remainder of the group would be positioned following any potential sale. A previous attempt led by I Squared to acquire the unit last year fell apart after concerns emerged over financing and broader uncertainty about the German economic outlook, according to reports.
Historical Context of the Bid
As widely known in private equity circles, joint bids like this one allow firms to pool resources for larger deals, but in this case, I Squared’s initial withdrawal highlights the challenges of securing backing in uncertain markets. The discussions reflect ongoing interest in media assets, though specifics remain tied to Ströer’s situation, according to Private Equity Wire.
