I Squared Capital is reportedly partnering with Blackstone on a potential offer for Ströer SE’s core advertising business, marking a renewed push into the German media group after an earlier attempt stalled, according top a report by Bloomberg.
The report cites unnamed people familiar with the discussions, as revealing that the private equity firms have recently been in talks with Ströer about acquiring its out-of-home advertising operations, which also include digital content assets.
I Squared previously explored a bid for the business earlier this year but withdrew in January after failing to secure sufficient investor support. The latest approach, now involving Blackstone, comes as Ströer’s share price has declined further, valuing the company at roughly €2bn.
Shares in the German advertising group jumped as much as 9.4% on Monday, their strongest intraday performance in six months, before closing 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. However, the consortium has not yet decided whether to pursue a carve-out of the advertising unit or a broader bid for the entire company.
The discussions come amid ongoing uncertainty at senior management level, with co-chief executive Christian Schmalz signalling he will not extend his contract beyond 2028 and chief financial officer Henning Gieseke also considering an exit, according to sources.
People close to the process stressed that talks remain at an early stage and there is no guarantee a formal offer will be made. Both firms and Ströer reportedly declined to comment.
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.
Ströer executives have previously acknowledged that separating the billboard business presents structural complexities, particularly around how the remainder of the group would be positioned following any potential sale.
