The sale of regional publisher Northcliffe Media to the new Local World consortium has been officially completed, it was announced today.
Parent company DMGT confirmed that the deal, first announced on 21 November, has now been finalised.
It will see DMGT receive £52.5m for Northcliffe plus 38.7pc of the new company, which will be headed by former Mirror Group boss David Montgomery.
The Iliffe family, owners of Yattendon Group, has sold its regional publishing arm Iliffe News & Media to Local World in exchange for a 21.3pc shareholding in the new business while Trinity Mirror has acquired a 20pc shareholding.
In a statement, Local World said the deal would create “a media business dedicated to the optimisation of local content and commerce across all platforms.”
“Local World will harness its proven publishing capabilities with new technologies to provide audiences – both print-readers and online consumers – with high quality, reliable and useful content in whatever format they choose,” it said.
Local World chief executive Steve Auckland added: “This is the start of an exciting journey for everyone at Local World and a pivotal moment for local media. I’d like to thank everyone who played a role in the transaction, especially all our employees who helped the process run so smoothly.
“I’m looking forward to us building on our existing strengths, transforming our products and services, and ensuring we are the one-stop-shop for local content and commerce.”
In a separate statement, DMGT said £30m of the cash proceeds from the disposal will be paid into pension funds.
Northcliffe Media earned operating profits of £26m from revenues of £213m in the 12 months to September, 2012.
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Well truly the end of an era, RIP Northcliffe!
A terrible end to a once (not so long ago either) great company.
Nunc est bibendum!
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I’ll drink to that !
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It’s all a smokescreen to cover the fact that local media still has no idea how to make a significant amount of money out of the internet.
Relaunch the company with a different name – it’s the same people in charge and the same people holding the purse strings.
At least it gives the impression that the industry’s movers and shakers are doing something. Sadly it’s just redesigning their letterheads (or these days, re-branding their Twitter accounts).
It’s all about the internet. Advertisers are quitting local newspapers like rats fleeing sinking ships. Anyone working for the papers in this group should hear loud alarm bells ringing, just in the name of the company (what does the word “World” signify and why was it chosen?) Think about the millions that was given to the PR/branding company which came up with the name, they didn’t just choose to include the word “World” at random.
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It’s all a smokescreen to cover the fact that local media still has no idea how to make a significant amount of money out of the internet.
Relaunch the company with a different name – it’s the same people in charge and the same people holding the purse strings.
At least it gives the impression that the industry’s movers and shakers are doing something. Sadly it’s just redesigning their letterheads (or these days, re-branding their Twitter accounts).
It’s all about the internet. Advertisers are quitting local newspapers like rats fleeing sinking ships. Anyone working for the papers in this group should hear loud alarm bells ringing, just in the name of the company (what does the word “World” signify and why was it chosen?) Think about the millions that was given to the PR/branding company which came up with the name, they didn’t just choose to include the word “World” at random.
Trust me this is most definitely not the same company or the same people. The people now in charge had been placed for just this eventuality! I do however agree with the rest of the sentiments expressed in your message. Mind you when you dump your talent en mass what do you expect.
I do know that David English and the decease Lord R will be spinning at this turn of events!
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