Yad2 now valued at $420 million as investors line up for potential sale
A decade after its record exit, Israel’s largest classifieds site is drawing global interest.
It has been 10 years since Shaul Elovitch sold Yad2 for NIS 806 million ($226 million), and interest is already heating up among entities looking to become the next owners of the classifieds site for buying and selling second-hand products. Industry sources estimate that Israel’s largest classifieds site is now valued at around €400 million (NIS 1.5 billion, $420 million), thanks to various strategic moves made by the company since it changed hands.
Foreign and Israeli investment funds are eyeing the company and have already begun exploratory talks with the American investment firm KKR, which will take over Yad2 next month following the completion of the business separation process at German media giant Axel Springer, in which KKR is a partner. Axel Springer acquired Yad2 from Walla, which was then owned by Elovitch, in 2014.
Calcalist has learned that among those interested in Yad2 are the CVC investment fund, which previously made a successful exit from Israeli internet company ironSource; the Apax fund, which had competed against Axel Springer for Yad2 in 2014; the Fortissimo fund, which controls Cellcom; and several other funds active in Europe. It was also learned that senior KKR executives met with the leadership of Meir Group, the Israeli importer of Volvo and Honda, though it is unclear whether the sale of Yad2 was discussed or if the meetings focused on other forms of collaboration. KKR did not respond to Calcalist’s inquiry, while Yad2 CEO Tomy Schoenfeld clarified that "no process is underway to sell the company, and it is not on the shelf." Indeed, such a process cannot begin until Axel Springer’s business split is finalized.
In September, the Financial Times revealed that two months earlier, in July, Axel Springer’s shareholders—including KKR, CEO Mathias Döpfner, and the widow of founder Friede Springer—had reached an agreement to split the media giant. The separation, which values Axel Springer’s businesses at €13.5 billion, will see Döpfner and the Springer family retain the company’s traditional newspaper holdings, including Bild, Business Insider, and Politico, while KKR will take control of 85% of the group's digital and online businesses, primarily its portfolio of classified advertising sites operating across Europe. These businesses will be consolidated under a German company called Aviv Group, in which Döpfner and the Springer family will retain a 15% minority stake. Aviv Group’s portfolio includes real estate classifieds sites such as France’s Seloger, Germany’s Immowelt, Belgium’s Immoweb, and France’s Meilleurs Agents, as well as Yad2 and German real estate agency Homeday. The separation is expected to be completed next month.
KKR’s involvement with Axel Springer began in 2019 when, along with the Canadian pension fund CPPIB, it took the company private in a €6.7 billion deal.
KKR's investment committee has not yet decided whether to sell Aviv Group and, if so, in what manner. However, the market is preparing for such a move, as the fund that KKR used for the investment is nearing the end of its life cycle and is starting to liquidate assets. Industry estimates suggest that a sale process could begin as early as the end of this year. KKR has two main options: selling Aviv Group as a whole—valued at €10 billion as part of the split—or selling its individual businesses separately. Industry sources believe KKR is leaning toward the latter, which would likely result in Yad2 being sold as an independent company, as this approach is expected to simplify the process and maximize returns.
How did Yad2's estimated value double in a decade?
Axel Springer acquired Yad2 in March 2014, marking a significant exit for Walla, which had acquired a 75% stake in 2010 at a valuation of NIS 150 million ($42 million) before buying out the remaining shares three years later. Walla had purchased the company from its founder, Shaun Tel, who established it in 2005.
At the time of the acquisition, Axel Springer executives told Calcalist they saw great untapped potential in Yad2. Since then, the company has significantly expanded its operations. Just a year after the acquisition, Yad2 bought the job search site IL Wanted. It also began selling its data to advertising agencies, leveraging its extensive database, which includes listings for apartments, cars, furniture, electronics, and more. This move boosted revenues substantially.
Yad2 later expanded into market analysis, offering insights based on its data, and began creating advertisements for businesses. It also introduced complementary services, such as a property value calculator. Under Axel Springer's ownership, Yad2 launched premium ad placements at higher rates, further increasing revenue. Additionally, the global growth of e-commerce provided a boost to Yad2’s business.
In 2014, when Axel Springer acquired Yad2, the company’s annual revenue stood at €41 million (NIS 150 million, $42 million). By 2017, revenues had already doubled, and estimates suggest that by the end of 2024, Yad2 generated around €240 million (NIS 900 million, $252 million). The company is believed to be profitable, with Axel Springer recouping its investment through dividend payments over the years.
Yad2’s biggest challenge: Facebook Marketplace
Today, Yad2’s primary competition comes from Facebook Marketplace, which has been growing rapidly. The challenge of maintaining Yad2’s market position now falls to CEO Tomy Schoenfeld, who took over in 2022. Schoenfeld succeeded Yavin Gil Mor, who had led Yad2 since 2010 after replacing founder Shaun Tel.
