Metro USA sold to ex-CEO Pelle Törnberg

Metro International will sell their USA operations (New York, Philadelphia and Boston) by June 1 to Seabay Media Holdings, a company formed and controlled by Pelle Törnberg, the former CEO of Metro International,

The three titles have a combined circulation of 590.000 daily copies and approximately 1.2 million readers in the US. Seabay Media will publish Metro in all three markets under a service and license agreement with Metro International.

Pelle Törnberg, founder and CEO of Seabay Media commented:

We are excited and look forward to continuing the business after completion and to further develop Metro in the United States. In the current economic situation advertisers are looking to brands like Metro that represents a strong offering through better value and reach. At the same time we recognize the challenges ahead but we will give Metro our full attention and we look forward to starting the hard, daily work with the staff of the newspapers necessary to ensure Metro’s success.

Per Mikael Jensen, President and CEO of Metro International:

Metro USA will continue as a licensed operation to Metro International under strong leadership from one of the experts in the business. After a rough 2007, we have seen many improvements in Metro USA and losses have decreased significantly. I’m confident that Metro USA will reach profitability and steady growth.

The book effect of the proposed transaction is estimated to be around $2 Million. (Metro International)

The book effect of the proposed transaction is estimated to be around -2 Million USD. Closing is subject to completion of definitive agreements and customary pre-closing conditions.

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