Axel Springer drops ProSieben bid

Axel Springer said contesting the regulator's decision was too risky

German media giant Axel Springer has dropped its 3.5bn euros ($4.2bn; £2.3bn) bid for ProSiebenSat.1 Media after regulators vetoed the deal.

Axel Springer, publisher of the best-selling daily newspaper Bild, wanted to buy the TV broadcaster to diversify and strengthen its business.

Axel Springer said it faced "unacceptable risks" after the German anti-trust watchdog rejected the deal.

Regulators said Springer would have too large a share of advertising revenue.

'Unacceptable risks'

Axel Springer has decided not to make an appeal against the Federal Cartel Office's decision to German ministers.

"In light of the numerous economic and legal uncertainties, a possible appeal or a possible application for a ministerial permit would have resulted in unacceptable risks," the company said.

ProSieben, which owns Germany's largest private TV broadcaster, is controlled by a group of investors led by US businessman Saim Haban.

The deal would have resulted in a major realignment of the German media market.

Axel Springer had argued that the deal would enable ProSieben to launch new services and compete more effectively with Bertelsmann, Germany's largest media company.

However, regulators said the deal would give family-owned Axel Springer and Bertelsmann a virtual duopoly of the advertising market.