Newspaper wants TV, loses €275m

Dutch publisher Telegraaf Media Group (TMG) will very likely record the highest losses in its existence this year. The publisher is obliged to buy shares in ProSiebenSat1 for a fixed price of €377m although the shares are in fact worth €275m less.

The publisher of Dutch leading newspaper de Telegraaf, free daily Spits and several local newspapers, entered into a deal with private equity funds KKR and Permira last year to buy the shares within one year for an agreed upon price.

The deal was done after TMG sold its share in SBS and got 12% of the new ProSiebenSat1 in return. TMG wanted to stay in the TV-business, according to the management who called the deal a ’strategy’. (Financieele Dagblad)

Last year the second Dutch publisher PCM (paid papers Volkskrant, NRC, Trouw and AD; free daily DAG) lost around €350 million (less assets and more debts) after private equity firm Apax Partners ‘ruled’ (cleared out) the company for three years.

Third Dutch publisher Wegener was sold to David Montgomery’s Mecom in 2007 and was told that the margins had to be raised and more than 400 people had to go for a start.

Together these publishers control around 90% of the Dutch paid newspaper market (75% of the total market).

This year they will probably sack journalists, sell property and merge operations. They will also blame the internet, the economy, and free dailies for this… instead of greedy and incompetent management.

One Response to “Newspaper wants TV, loses €275m”

  1. Newspaper Innovation » Blog Archive » Ukrainian freesheet OBZOR for sale Says:

    [...] is going through a major cost saving program (see previous post), where 500 people will lose their job in the Netherlands while several activities will be sold. In [...]