Private equity giant KKR’s backing of German media company Axel Springer will strengthen the latter’s hand as it tries to transform its business while facing increased competition from the likes of Google and Facebook, analysts say.

KKR officially confirmed its bid for Axel Springer last week, valuing the company at €6.8 billion. The private equity firm said it will offer €63 per share in cash to all shareholders. The takeover, subject to a minimum acceptance of 20%, is widely expected to go ahead.