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You can find the current article at its original source at https://www.theguardian.com/business/2018/oct/11/johnston-press-puts-itself-up-for-sale-i-newspaper-yorkshire-post
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| Johnston Press, owner of i newspaper, puts itself up for sale | Johnston Press, owner of i newspaper, puts itself up for sale |
| (30 days later) | |
| Johnston Press, which owns titles including the i newspaper, the Scotsman and the Yorkshire Post, has put itself up for sale. | Johnston Press, which owns titles including the i newspaper, the Scotsman and the Yorkshire Post, has put itself up for sale. |
| The beleaguered publisher, which owns almost 200 regional newspapers, had become bogged down in negotiations with bondholders over a £220m refinancing due in June that it cannot afford. | The beleaguered publisher, which owns almost 200 regional newspapers, had become bogged down in negotiations with bondholders over a £220m refinancing due in June that it cannot afford. |
| David King, the Johnston Press chief executive, said: “This comes after a year-plus of working out various strategic options. | David King, the Johnston Press chief executive, said: “This comes after a year-plus of working out various strategic options. |
| “In my view, we are obliged to find out what the market thinks about buying Johnston Press. We need to galvanise people, potential buyers, to make it clear if you wait, you might miss out.” | “In my view, we are obliged to find out what the market thinks about buying Johnston Press. We need to galvanise people, potential buyers, to make it clear if you wait, you might miss out.” |
| King said he would prefer to sell the business as a whole and believes there is a “reasonable prospect” of a sale keeping Johnston Press intact. | King said he would prefer to sell the business as a whole and believes there is a “reasonable prospect” of a sale keeping Johnston Press intact. |
| However, he admitted rival publishers and interested parties are likely to focus on its most desirable assets. | However, he admitted rival publishers and interested parties are likely to focus on its most desirable assets. |
| “We have a lot of very high-quality assets at Johnston Press sitting under a large debt pile that we inherited,” King said. | “We have a lot of very high-quality assets at Johnston Press sitting under a large debt pile that we inherited,” King said. |
| The i newspaper, which Johnston Press bought from the Independent and the Evening Standard owner, Evgeny Lebedev, for £24m in 2016, is considered to be the most valuable title in a group that has a stock market valuation of less than £3m due to its onerous debts. The newspaper has performed well since the acquisition and is on track to make up to £12m in profit this year, which would lead Johnston Press to seek a potential price tag of £60m once the newspaper is decoupled from its parent’s debt burden. | The i newspaper, which Johnston Press bought from the Independent and the Evening Standard owner, Evgeny Lebedev, for £24m in 2016, is considered to be the most valuable title in a group that has a stock market valuation of less than £3m due to its onerous debts. The newspaper has performed well since the acquisition and is on track to make up to £12m in profit this year, which would lead Johnston Press to seek a potential price tag of £60m once the newspaper is decoupled from its parent’s debt burden. |
| The i is likely to garner strong interest. When Lebedev quietly sounded out potential buyers for the title, Reach – the publisher of the Mirror and the Express – expressed an interest but was not willing to pay the amount Johnston Press eventually stumped up. Reach has the printing contract for the i. | The i is likely to garner strong interest. When Lebedev quietly sounded out potential buyers for the title, Reach – the publisher of the Mirror and the Express – expressed an interest but was not willing to pay the amount Johnston Press eventually stumped up. Reach has the printing contract for the i. |
| It is understood News UK, the publisher of the Sun and the Times, also previously ran the rule over the i. The cut-price national title could also prove to be of strategic importance to other national newspaper publishers. | It is understood News UK, the publisher of the Sun and the Times, also previously ran the rule over the i. The cut-price national title could also prove to be of strategic importance to other national newspaper publishers. |
| However, the actual value of the i will be difficult to gauge because of issues such as cost allocation and an £850,000 annual content deal it has in place with Lebedev’s Independent and Evening Standard, which expires early next year. | However, the actual value of the i will be difficult to gauge because of issues such as cost allocation and an £850,000 annual content deal it has in place with Lebedev’s Independent and Evening Standard, which expires early next year. |
| Johnston Press expects prospective buyers to submit indicative bids within the next six weeks. | Johnston Press expects prospective buyers to submit indicative bids within the next six weeks. |
| In an internal email, King sought to reassure staff about the future of the business. | In an internal email, King sought to reassure staff about the future of the business. |
| “This process is about securing a positive future for Johnston Press,” he said. “In the meantime, it is business as usual. Johnston Press is a strong and resilient business, with good profits and strong profit margins, great people and prestigious titles. | “This process is about securing a positive future for Johnston Press,” he said. “In the meantime, it is business as usual. Johnston Press is a strong and resilient business, with good profits and strong profit margins, great people and prestigious titles. |
| “I am certain that whatever the future ownership of the company, we will continue to produce our titles long after the end of the strategic review.” | “I am certain that whatever the future ownership of the company, we will continue to produce our titles long after the end of the strategic review.” |
| Johnston Press’s biggest shareholder, on 22%, is Christen Ager-Hanssen, who last year looked to oust its board in a plan involving the former Scottish first minister Alex Salmond. The second-largest shareholder is the activist fund Crystal Amber, run by Richard Bernstein, which controls 10%. | Johnston Press’s biggest shareholder, on 22%, is Christen Ager-Hanssen, who last year looked to oust its board in a plan involving the former Scottish first minister Alex Salmond. The second-largest shareholder is the activist fund Crystal Amber, run by Richard Bernstein, which controls 10%. |
| Johnston Press has struggled over the past decade to reduce a debt pile that stood at well over £400m, built up from a string of acquisitions made before the arrival of Google and Facebook hammered the profitability of newspapers. | Johnston Press has struggled over the past decade to reduce a debt pile that stood at well over £400m, built up from a string of acquisitions made before the arrival of Google and Facebook hammered the profitability of newspapers. |
| In 2004, the year Mark Zuckerberg launched Facebook, the UK regional newspaper advertising market was worth £2.7bn. By the end of next year, it will be worth £700m, according to WPP’s Group M. | In 2004, the year Mark Zuckerberg launched Facebook, the UK regional newspaper advertising market was worth £2.7bn. By the end of next year, it will be worth £700m, according to WPP’s Group M. |
| Between 2009 and 2016, the combined annual circulation of UK regional and local titles halved, from 2.2m to 1.1m, according to Enders Analysis. | Between 2009 and 2016, the combined annual circulation of UK regional and local titles halved, from 2.2m to 1.1m, according to Enders Analysis. |
| In May, Ashley Highfield, a former BBC and Microsoft senior executive, stepped down as chief executive of Johnston Press after seven years. | In May, Ashley Highfield, a former BBC and Microsoft senior executive, stepped down as chief executive of Johnston Press after seven years. |
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| The Scotsman | |
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