GMG Group sells regional media business for £44.8m
GMG Group sells regional media business for £GMG Media Group has agreed to sell its regional media business to Trinity Mirror in a deal worth £44.8m.
The deal, due to be completed by 28 March, will see GMG receive £7.4m in cash. The remaining value of £37.4m accounts for Trinity Mirror releasing GMG from a long-term printing contract.
GMG Regional Media publishes 32 newspapers and associated websites and is made up of two operating businesses – MEN Media which publishes 22 titles in the North West of England including the Manchester Evening News and S&B Media which publishes 10 in the South of England including the Surrey Advertiser and Reading Post.
Greater Manchester TV station Channel M and local newspapers in Woking are not part of the deal.
Mark Dodson, chief executive of GMG Regional Media, will leave the company along with Ruth Spratt, managing director of MEN Media.
Spratt will be replaced by David Sharrock, currently chief operating officer of GMG Regional Media.
Carolyn McCall, chief executive of Guardian Media Group, said: “The Manchester Evening News and its sister titles have made a huge contribution to the fortunes of the Group for the best part of a century. GMG would like to pay tribute to all the staff for their hard work and achievement in a sector dealing with structural change as well as economic downturn.
“GMG is mandated to secure the future of the Guardian in perpetuity, and we have a strong portfolio which has to be in the right shape to achieve that goal. The Group board and the Scott Trust have made the decision to sell in light of these strategic objectives.
“GMG Regional Media is a good business and a publisher of important newspapers. However, we believe Trinity Mirror, as one of the UK’s biggest regional publishers, is best placed to develop this business in a market that is likely to consolidate further. We are therefore confident that this decision is in the best long-term interests of the regional business and its staff, as well as delivering real value for the Group.
“Mark Dodson has been a major part of GMG Regional Media’s success over many years. He and his leadership team have shown creativity, courage and determination in a very tough media market. We thank them for that.”
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Comments
Having grown up with the MEN I've watched what started out as a slow decline in the early 90s gathering pace over the past few years - so much for the Scott Trust.
From what I understand staff levels are at the lowest to be able to produce a paper, though most of the content seems now to be agency generated, and I can't see how a move to Oldham would help in the long-term.
Could the MEN be the first regional paper to fold?
The MEN is a good product but as the decline in classified advertising increases then the income declines - there are some good people in there and I hope that Trinity looks after and delivers a worthwhile product portfolio.
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