Exclusive: Prosus shows early-stage interest in German auto marketplace Mobile.de, sources say
News Summary
Dutch technology investment group Prosus has expressed early-stage interest in potentially bidding for Mobile.de, a German online auto marketplace, as its owners prepare to sell shares in the group. While shareholders Permira and Blackstone are leaning towards an initial public offering (IPO) for Mobile.de, companies including Prosus are showing interest, with Prosus potentially considering a bid through its classified unit OLX. Private equity funds hired JPMorgan and Goldman Sachs earlier this year to prepare Mobile.de for an IPO next year, which could be valued as much as 10 billion euros. No formal sale process has started, and Prosus is not currently in talks with the owners and may ultimately decide against making a bid. Other private equity firms, including EQT, Cinven, and Apax, have also shown interest. Mobile.de's parent company, Adevinta, was acquired by Permira and Blackstone in 2023, and the owners have since been pursuing a breakup of the company.
Background
Mobile.de is Germany's largest online auto marketplace, with its parent company Adevinta having been acquired by private equity firms Permira and Blackstone in 2023 for approximately 141 billion Norwegian crowns. Since the acquisition, Permira and Blackstone have been pursuing a breakup of Adevinta's assets, including the sale of its Spanish classifieds business and its Austrian unit Willhaben. Prosus, the investment arm of South African group Naspers, has a broad portfolio of technology investments globally, particularly in classifieds. Earlier this month, Prosus acquired French motors classified platform La Centrale for 1.1 billion euros, marking a strategic entry into the European used-car marketplace sector. This reported interest in Mobile.de aligns with Prosus's strategic direction to expand its footprint in the European digital classifieds market.
In-Depth AI Insights
Why is Prosus aggressively pursuing expansion in the European auto classifieds market? - This signifies a clear geographic and vertical integration strategy by Prosus, aiming to solidify its position in specific high-growth digital markets. - The acquisition of La Centrale and interest in Mobile.de likely indicate Prosus sees substantial untapped potential in the European used-car online transaction market, or believes scale can effectively counter competition from other giants. - Given its parent Naspers' deep roots in classifieds, Prosus may be looking to leverage technological synergies and data sharing by integrating platforms across different countries, enhancing user experience and advertising efficiency. What are the key strategic considerations for Permira and Blackstone in choosing between an IPO and a direct sale? - Valuation maximization is the core objective. The 10 billion euro IPO valuation is an attractive benchmark, but market conditions, investor sentiment, and potential buyer synergy expectations will influence the final choice. - An IPO might offer broader liquidity and future growth opportunities but also comes with higher disclosure requirements and market volatility risks. - A direct sale to a strategic buyer like Prosus could command a control premium and simplify the exit process, reducing market uncertainty. - The two private equity giants are likely weighing the current exit strategy against future market trends, especially the public market's appetite for high-valuation tech assets within the overall 2025 economic environment. How might this M&A activity signal broader trends in the digital classifieds market? - This flurry of M&A and sale activities underscores the recovery and attractiveness of digital classifieds platforms as prime assets for both private equity and strategic investors. - Market consolidation is a dominant trend, with large tech investment groups (like Prosus) acquiring to gain market share, seeking economies of scale and network effects. This could lead to a few dominant platforms within the industry. - High valuations suggest investor optimism about the long-term profitability and growth potential of online classifieds, especially as traditional advertising shifts to digital channels. It also reflects the resilience of platforms with strong market positions and brand recognition across economic cycles.