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Lebedev buys Independent for £1 | Lebedev buys Independent for £1 |
(10 minutes later) | |
The Independent and Independent on Sunday newspapers have been sold to Russian billionaire Alexander Lebedev, owner of the London Evening Standard. | The Independent and Independent on Sunday newspapers have been sold to Russian billionaire Alexander Lebedev, owner of the London Evening Standard. |
The oligarch bought the loss-making paper from Irish company Independent News & Media (INM) for £1, the cost of one daily edition of the newspaper. | The oligarch bought the loss-making paper from Irish company Independent News & Media (INM) for £1, the cost of one daily edition of the newspaper. |
As part of the deal, INM agreed to pay Mr Lebedev's Independent Print Limited (IPL) £9.25m over the next 10 months. | |
A deal between the two parties has been under discussion for many months. | A deal between the two parties has been under discussion for many months. |
'Positive outcome' | |
The payment from INM to the new owners is to cover "all future trading liabilities and obligations". | The payment from INM to the new owners is to cover "all future trading liabilities and obligations". |
IPL said the agreement "provides a commitment by the Lebedev family to invest in the newspapers, which are currently loss-making, and inject new energy and impetus into them." | |
INM chief executive Gavin O'Reilly said the deal "is the most satisfactory and positive outcome for the titles, their staff and for INM's shareholders." | |
The sale still needs to be approved by the Irish competition authorities. | |
As a result of the sale, which is expected to be completed in May, INM UK head Ivan Fallon has retired from the group. | As a result of the sale, which is expected to be completed in May, INM UK head Ivan Fallon has retired from the group. |
Free paper | Free paper |
Both titles have, historically, struggled to get enough readers to generate sufficient profits, and this has been exacerbated in recent years by competition from free, online news. | Both titles have, historically, struggled to get enough readers to generate sufficient profits, and this has been exacerbated in recent years by competition from free, online news. |
They have also suffered during the downturn as advertising revenue has fallen sharply. | They have also suffered during the downturn as advertising revenue has fallen sharply. |
Mr Lebedev, a former KGB agent, bought the Evening Standard, also for £1, last year. | Mr Lebedev, a former KGB agent, bought the Evening Standard, also for £1, last year. |
The paper is now given away free, and has seen its readership grow sharply as a result. | The paper is now given away free, and has seen its readership grow sharply as a result. |
There is speculation that Mr Lebedev also plans to give away copies of the Independent titles for nothing. | There is speculation that Mr Lebedev also plans to give away copies of the Independent titles for nothing. |