German and Swiss media groups Axel Springer and Ringier announced Wednesday that they would merge their east European operations to create one of the region's biggest print and digital media publishers.
The 414 million euro (R2.9 billion) joint venture will combine the German giant's subsidiaries in Poland, the Czech Republic and Hungary with Ringier's operations in Serbia, Slovakia, Czech Republic and Hungary, the companies said in a statement.
"For both companies, this partnership is an excellent opportunity to considerably increase our journalistic core business with five market-leading popular newspapers in attractive growth markets," Axel Springer chief executive Mathias Doepfner said.
"It establishes optimal conditions for future expansion in the era of digitalisation," he added.
More than 100 print and 70 online publications are involved in the merged group which will bring together some 4 800 employees.
Springer and Ringier will each hold a 50 percent share in the company based in the Swiss city of Zurich, which they aim to float on the stock market in three to five years.
"Together we are so well positioned in the individual markets that we will jointly take this new company public," Ringier chief executive Christian Unger said.
"It will be instrumental in shaping the future of the emerging media markets in Eastern Europe." - Sapa-AFP