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| Version 3 | Version 4 |
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| Independent owner considering closing national print titles | Independent owner considering closing national print titles |
| (about 2 hours later) | |
| The owner of the Independent and Independent on Sunday is considering closing the national print titles and moving to a web-only operation. | The owner of the Independent and Independent on Sunday is considering closing the national print titles and moving to a web-only operation. |
| Evgeny Lebedev and his top lieutenants have not yet made a final decision, however it is widely expected that they will cease printing the 30-year old newspaper, leading to significant job losses. | Evgeny Lebedev and his top lieutenants have not yet made a final decision, however it is widely expected that they will cease printing the 30-year old newspaper, leading to significant job losses. |
| The move has been prompted by Lebedev’s decision to sell the i, the cut-price national title which props up the Independent, to Johnston Press in a £25m cash deal. | The move has been prompted by Lebedev’s decision to sell the i, the cut-price national title which props up the Independent, to Johnston Press in a £25m cash deal. |
| Assuming the sale goes through, Lebedev is expected to seek to invest the proceeds into further developing the independent.co.uk website into an international digital newsbrand – while ending the newspapers. | Assuming the sale goes through, Lebedev is expected to seek to invest the proceeds into further developing the independent.co.uk website into an international digital newsbrand – while ending the newspapers. |
| His father Alexander, who handed control of the media assets to his son, said he was not directly involved in negotiations over the i, but insisted that the Independent and Independent on Sunday both “had a future”. | His father Alexander, who handed control of the media assets to his son, said he was not directly involved in negotiations over the i, but insisted that the Independent and Independent on Sunday both “had a future”. |
| He said reports that they might close were “guessing” and added there “could be different options” out there for the struggling titles. “If someone is interested there is a market. This is a capitalist economy,” he told the Guardian. | He said reports that they might close were “guessing” and added there “could be different options” out there for the struggling titles. “If someone is interested there is a market. This is a capitalist economy,” he told the Guardian. |
| Alexander Lebedev was bullish about the Independent’s prospects. Asked if it could continue, he said: “I think so. It has a future. Believe me.” | Alexander Lebedev was bullish about the Independent’s prospects. Asked if it could continue, he said: “I think so. It has a future. Believe me.” |
| It is understood that Evgeny Lebedev has been seeking a buyer for the Independent titles, as he and his father did in 2014, but talks with a potential Qatari suitor fell through. | It is understood that Evgeny Lebedev has been seeking a buyer for the Independent titles, as he and his father did in 2014, but talks with a potential Qatari suitor fell through. |
| Evgeny is expected to retain ownership of the Evening Standard, which is 25% owned by Daily Mail publisher DMGT, and the TV station London Live. | Evgeny is expected to retain ownership of the Evening Standard, which is 25% owned by Daily Mail publisher DMGT, and the TV station London Live. |
| As the news of the deal and potential closure broke Amol Rajan, the editor of the Independent, sent an email to staff acknowledging that there would be a “lot of questions and uncertainty”. | |
| He offered the 150 full-time Indy staff, supported by casuals, little to assuage their fears of closure. | |
| “For the time being we really are bound by strict rules on what we can and can’t say about this potential deal,” he said. “I will obviously do all I can to keep everyone updated as soon as possible, within the guidelines of the law.” | |
| He then thanked staff for their “understanding”. | |
| Johnston Press will need to gain shareholder approval for the deal, which is expected to be announced within days, and will retain about half the i’s staff. | Johnston Press will need to gain shareholder approval for the deal, which is expected to be announced within days, and will retain about half the i’s staff. |
| The company will also licence content from the Independent and the Evening Standard. | The company will also licence content from the Independent and the Evening Standard. |
| Sales figures show how difficult it has become for the Independent and Independent on Sunday. The Independent’s official paid circulation is just 40,718, boosted by 15,356 free or discounted bulk copies. | Sales figures show how difficult it has become for the Independent and Independent on Sunday. The Independent’s official paid circulation is just 40,718, boosted by 15,356 free or discounted bulk copies. |
| The Independent on Sunday sells on average 42,888 copies, with its circulation more than doubled with another 49,861 bulks. | The Independent on Sunday sells on average 42,888 copies, with its circulation more than doubled with another 49,861 bulks. |
| It is understood that a combination of the i, Independent and Independent on Sunday is at almost break even point. | It is understood that a combination of the i, Independent and Independent on Sunday is at almost break even point. |
| Heavy cost-cutting has seen staff on the flagship national titles reduced to just 150 full-time employees, boosted by a casual workforce. | Heavy cost-cutting has seen staff on the flagship national titles reduced to just 150 full-time employees, boosted by a casual workforce. |
| The last publicly available figures, for the year to September 2014, show a trading loss of £4.6m. | The last publicly available figures, for the year to September 2014, show a trading loss of £4.6m. |
| When the Lebedevs acquired the Independent and Independent on Sunday in 2010 losses were running at £22.6m. | When the Lebedevs acquired the Independent and Independent on Sunday in 2010 losses were running at £22.6m. |
| Alexander Lebedev said the financial woes of his newspaper group had been exaggerated. | Alexander Lebedev said the financial woes of his newspaper group had been exaggerated. |
| “We are not pressed on anything really,” he said. “TV [London Live] promises to break even over the next six months. The Indy was doing quite well in recent months. There is no pressure, as far as I know. The market can be volatile but I haven’t seen anything bad in half a year.” | “We are not pressed on anything really,” he said. “TV [London Live] promises to break even over the next six months. The Indy was doing quite well in recent months. There is no pressure, as far as I know. The market can be volatile but I haven’t seen anything bad in half a year.” |
| He went on: “I think the Independent has a future. The British nation should not be frustrated.” | He went on: “I think the Independent has a future. The British nation should not be frustrated.” |
| The Lebedevs have pumped more than £111m into their UK media assets up until the end of September 2014, £65m of that is thought to have been on the Independent titles. | The Lebedevs have pumped more than £111m into their UK media assets up until the end of September 2014, £65m of that is thought to have been on the Independent titles. |
| The launch of the i in 2010 was a clever strategic move that provided something of a lifeline for the Independent titles. | The launch of the i in 2010 was a clever strategic move that provided something of a lifeline for the Independent titles. |
| The cut price national, which has doubled in price to 40p since launch, was described by a former chief executive as a vital “rubber ring” to make the Indy titles sustainable long term. | The cut price national, which has doubled in price to 40p since launch, was described by a former chief executive as a vital “rubber ring” to make the Indy titles sustainable long term. |
| Lebedev is aiming to invest the £25m proceeds from the sale of the i into beefing up the Independent website. | Lebedev is aiming to invest the £25m proceeds from the sale of the i into beefing up the Independent website. |
| Interestingly, the website is held in a separate company to the Indy print titles, which means it is ring-fenced from the impact of any decision to close the titles. | Interestingly, the website is held in a separate company to the Indy print titles, which means it is ring-fenced from the impact of any decision to close the titles. |
| Arguably the newspapers’ most valuable asset, it has 2.8 million daily unique browsers and 58 million monthly uniques, making it a relative minnow in comparison to some of its rivals. | Arguably the newspapers’ most valuable asset, it has 2.8 million daily unique browsers and 58 million monthly uniques, making it a relative minnow in comparison to some of its rivals. |
| The company that controls the website has just two directors, Evgeny Lebedev and Justin Byam Shaw. | The company that controls the website has just two directors, Evgeny Lebedev and Justin Byam Shaw. |
| Lebedev is understood to remain committed to the Evening Standard, which makes about £2m in profits. | Lebedev is understood to remain committed to the Evening Standard, which makes about £2m in profits. |
| He is also continuing to back London Live, the local TV channel for the capital, which reported a loss of £6m in the year to the end of September. | He is also continuing to back London Live, the local TV channel for the capital, which reported a loss of £6m in the year to the end of September. |
| The channel, which has gone through a major restructuring and content strategy shift, is now targeting break even in 2017. | The channel, which has gone through a major restructuring and content strategy shift, is now targeting break even in 2017. |
| Johnston Press, which has 220 local and regional titles, believes that owning the i will help it attract a greater share of national advertising and create the UK’s fourth largest print publisher with over 600,000 sales per day. | Johnston Press, which has 220 local and regional titles, believes that owning the i will help it attract a greater share of national advertising and create the UK’s fourth largest print publisher with over 600,000 sales per day. |
| The i has a circulation of 268,431, although 67,752 of those are bulk copies. | The i has a circulation of 268,431, although 67,752 of those are bulk copies. |
| The regional newspaper publisher said that in the year to the end of September 2015, the i had an “unaudited carve-out” operating profit of £5.2m. | The regional newspaper publisher said that in the year to the end of September 2015, the i had an “unaudited carve-out” operating profit of £5.2m. |
| The figure is the first time an independent assessment of the profitability of the i, which was launched in 2010, has been made public. | The figure is the first time an independent assessment of the profitability of the i, which was launched in 2010, has been made public. |
| It has widely been considered almost impossible to unpick the operation of the i from the Independent and Independent on Sunday, due to huge editorial and commercial co-dependency and shared resource between the titles. | It has widely been considered almost impossible to unpick the operation of the i from the Independent and Independent on Sunday, due to huge editorial and commercial co-dependency and shared resource between the titles. |
| News of the deal comes weeks after chief executive Ashley Highfield, the former senior BBC and Microsoft executive, announced sweeping plans to sell-off swathes of less desirable titles to focus on the group’s “gems”. | News of the deal comes weeks after chief executive Ashley Highfield, the former senior BBC and Microsoft executive, announced sweeping plans to sell-off swathes of less desirable titles to focus on the group’s “gems”. |
| While titles such as the Scotsman and Yorkshire Post have a future, those that don’t fit certain criteria, such as titles that serve wealthier readers with “more disposable income”, are to be offered for sale to rivals. | While titles such as the Scotsman and Yorkshire Post have a future, those that don’t fit certain criteria, such as titles that serve wealthier readers with “more disposable income”, are to be offered for sale to rivals. |
| Johnston Press has been in a financially difficult situation since the downturn. When Highfield joined in 2011 the company was struggling with a debt burden of almost £400m. It has since reduced this to £180m, on profits of £56m and revenues of £247m. | Johnston Press has been in a financially difficult situation since the downturn. When Highfield joined in 2011 the company was struggling with a debt burden of almost £400m. It has since reduced this to £180m, on profits of £56m and revenues of £247m. |
| Alex DeGroote, an analyst at Peel Hunt with a bearish view of Johnston Press’s future, said he was “confused” by the rationale for the proposed deal. | Alex DeGroote, an analyst at Peel Hunt with a bearish view of Johnston Press’s future, said he was “confused” by the rationale for the proposed deal. |
| “We are in favour of print industry consolidation,” he said. “However, we are confused by Johnston Press’s business strategy as a regional publisher, which has focused on paring back print, in favour of digital.” | “We are in favour of print industry consolidation,” he said. “However, we are confused by Johnston Press’s business strategy as a regional publisher, which has focused on paring back print, in favour of digital.” |