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Journalists wonder if the Financial Times is safe in Nikkei's hands Journalists wonder if the Financial Times is safe in Nikkei's hands
(about 4 hours later)
Why has Nikkei bought the Financial Times? What’s the logic of the Japanese media company’s very expensive acquisition? Business commentators, while acknowledging the financial sense in Pearson’s sell-off, appear concerned about the FT’s editorial independence in future.Why has Nikkei bought the Financial Times? What’s the logic of the Japanese media company’s very expensive acquisition? Business commentators, while acknowledging the financial sense in Pearson’s sell-off, appear concerned about the FT’s editorial independence in future.
As far as the FT’s own Tokyo-based writers, Kana Inagaki and Leo Lewis, are concerned, it’s all about international expansion, “an attempt to turn a heavily domestic name into a global brand and survive the shift to digital journalism.”As far as the FT’s own Tokyo-based writers, Kana Inagaki and Leo Lewis, are concerned, it’s all about international expansion, “an attempt to turn a heavily domestic name into a global brand and survive the shift to digital journalism.”
Noting that the deal came just four months after Nikkei appointed a new chief executive at the business newspaper, Naotoshi Okada, they argue that “the company has struggled to build its name overseas, grappling with the same burden faced by other Japanese companies: a shrinking and ageing home market.”Noting that the deal came just four months after Nikkei appointed a new chief executive at the business newspaper, Naotoshi Okada, they argue that “the company has struggled to build its name overseas, grappling with the same burden faced by other Japanese companies: a shrinking and ageing home market.”
In 2013, it launched an English language publication, Nikkei Asian Review, in order to build its profile outside the country “but the publication has struggled to build an audience.”In 2013, it launched an English language publication, Nikkei Asian Review, in order to build its profile outside the country “but the publication has struggled to build an audience.”
So the FT is to be Nikkei’s global calling card. But it comes at a price. The FT writers say the £844m deal “will weigh on Nikkei’s balance sheet.”So the FT is to be Nikkei’s global calling card. But it comes at a price. The FT writers say the £844m deal “will weigh on Nikkei’s balance sheet.”
The Daily Telegraph’s Allister Heath similarly notes that the company has paid a “steep price” and to justify spending so much it will “need to grow the FT’s digital business very substantially indeed in a difficult, hyper-competitive market.”The Daily Telegraph’s Allister Heath similarly notes that the company has paid a “steep price” and to justify spending so much it will “need to grow the FT’s digital business very substantially indeed in a difficult, hyper-competitive market.”
He argues that Nikkei, having taken a stake in Monocle magazine in September 2014, “is clearly keen to build a major presence in English-language news; and as a privately-held company, can plan for the very long-term.”He argues that Nikkei, having taken a stake in Monocle magazine in September 2014, “is clearly keen to build a major presence in English-language news; and as a privately-held company, can plan for the very long-term.”
Heath also wonders if the FT’s management team will survive. “When the dust settles,” he writes, “will Nikkei send in its own editorial and business executives, or will it recruit in the UK or US?”Heath also wonders if the FT’s management team will survive. “When the dust settles,” he writes, “will Nikkei send in its own editorial and business executives, or will it recruit in the UK or US?”
Will the FT remain as editorially independent under its new owners as it did under Pearson? In a second Telegraph piece, the paper’s technology and media editor, Christopher Williams, cites a tweet by a New York Times reporter, Hiroko Tabuchi, in which he questions Nikkei’s commitment to independent journalism. Will the FT remain as editorially independent under its new owners as it did under Pearson? In a second Telegraph piece, the paper’s technology and media editor, Christopher Williams, cites a tweet by a New York Times reporter, Hiroko Tabuchi, in which she questions Nikkei’s commitment to independent journalism.
He labels it as “basically a PR machine for Japanese business” and accuses it of ignoring major corporate scandals in the country. She labels it as “basically a PR machine for Japanese business” and accuses it of ignoring major corporate scandals in the country.
A similar point was made by Michael Woodford, the former president of the Japanese technology group Olympus in a Times article by Deirdre Hipwell. He was the whistleblower who was fired after exposing, in the FT incidentally, a $1.7bn fraud inside the corporation.A similar point was made by Michael Woodford, the former president of the Japanese technology group Olympus in a Times article by Deirdre Hipwell. He was the whistleblower who was fired after exposing, in the FT incidentally, a $1.7bn fraud inside the corporation.
Hipwell quotes Woodford as saying: “The Nikkei is known as the corporate voicepiece of Japan and has a notorious reputation for being leaked [price-sensitive] company information. In contrast to the FT, which broke the news [of the Olympus scandal], the Nikkei was like the public relations office for Olympus.”Hipwell quotes Woodford as saying: “The Nikkei is known as the corporate voicepiece of Japan and has a notorious reputation for being leaked [price-sensitive] company information. In contrast to the FT, which broke the news [of the Olympus scandal], the Nikkei was like the public relations office for Olympus.”
While he was sure that the FT would be committed to maintaining its editorial independence, he said he was worried that the “subliminal effect” of being owned by Nikkei might make it less willing to publish articles critical of corporate Japan.While he was sure that the FT would be committed to maintaining its editorial independence, he said he was worried that the “subliminal effect” of being owned by Nikkei might make it less willing to publish articles critical of corporate Japan.
But she also quotes Pearson’s chief executive, John Fallon, as saying that the FT’s editorial independence and integrity had been a “key part” of its negotiations with Nikkei.But she also quotes Pearson’s chief executive, John Fallon, as saying that the FT’s editorial independence and integrity had been a “key part” of its negotiations with Nikkei.
The Guardian, in an editorial, also refers to the FT breaking the story in 2011 about the Olympus corporate scandal. By contrast, “Nikkei did not cover it until it became wholly unavoidable.” The Guardian continues:The Guardian, in an editorial, also refers to the FT breaking the story in 2011 about the Olympus corporate scandal. By contrast, “Nikkei did not cover it until it became wholly unavoidable.” The Guardian continues:
“Nor would readers of Nikkei be acutely aware that Japanese-made airbags have been blowing up in the US since 2004, a story that has long preoccupied the New York Times.“Nor would readers of Nikkei be acutely aware that Japanese-made airbags have been blowing up in the US since 2004, a story that has long preoccupied the New York Times.
Mainstream Japanese journalism is not corrupt, but it is respectful, like the culture around it. Anglo-Saxon journalistic traditions are not, at their best, respectful of anything.Mainstream Japanese journalism is not corrupt, but it is respectful, like the culture around it. Anglo-Saxon journalistic traditions are not, at their best, respectful of anything.
There are some things that British newspapers should respect more, such as privacy, but it is also possible for respect to shade into the kind of incurious deference to power which lets scandalous behaviour flourish.”There are some things that British newspapers should respect more, such as privacy, but it is also possible for respect to shade into the kind of incurious deference to power which lets scandalous behaviour flourish.”
But the paper views the sale of the FT to Nikkei as “a fascinating development in the globalisation and digitisation” of the newspaper industry.But the paper views the sale of the FT to Nikkei as “a fascinating development in the globalisation and digitisation” of the newspaper industry.
Despite continuing high sales for Japanese newsprint papers, “subscribers are getting old” and “the habit of print is weakening.”Despite continuing high sales for Japanese newsprint papers, “subscribers are getting old” and “the habit of print is weakening.”
Now, with fewer students subscribing to papers and more people reading news on their smartphones, “it makes sense for Nikkei to spend its cash on one of the few really successful global digital brands.”Now, with fewer students subscribing to papers and more people reading news on their smartphones, “it makes sense for Nikkei to spend its cash on one of the few really successful global digital brands.”
Alex Brummer, in the Daily Mail, also raises questions about whether Nikkei will respect the FT’s editorial independence. He asks: do the editors and managers of Nikkei understand the values “that distinguish British financial journalism?”Alex Brummer, in the Daily Mail, also raises questions about whether Nikkei will respect the FT’s editorial independence. He asks: do the editors and managers of Nikkei understand the values “that distinguish British financial journalism?”
He writes: “There was not one question from a Japanese reporter at last night’s online press conference on the Nikkei deal.”He writes: “There was not one question from a Japanese reporter at last night’s online press conference on the Nikkei deal.”
After recalling that Japanese papers failed to unmask the Olympus scandal, he concludes:After recalling that Japanese papers failed to unmask the Olympus scandal, he concludes:
“We all wish the 500 FT journalists the very best as they enter a new era... One trusts that a great British product will not be stifled by the deeply unadventurous hand of Japanese publishers.”“We all wish the 500 FT journalists the very best as they enter a new era... One trusts that a great British product will not be stifled by the deeply unadventurous hand of Japanese publishers.”
Incidentally, Brummer records the fact that at 2.13pm on Thursday, the FT’s online headline said: “Pearson in talks with Axel Springer over sale of FT group.”Incidentally, Brummer records the fact that at 2.13pm on Thursday, the FT’s online headline said: “Pearson in talks with Axel Springer over sale of FT group.”
The deal was carried out in such secrecy that even the paper’s own reporters were wrong-footed. They were not alone of course. I was among several commentators who thought Pearson, having denied so many sale rumours down the years, would never offload the FT.The deal was carried out in such secrecy that even the paper’s own reporters were wrong-footed. They were not alone of course. I was among several commentators who thought Pearson, having denied so many sale rumours down the years, would never offload the FT.
After asserting so confidently on Tuesday that a sale was not on the cards, I was, if not red-faced when the news of the Nikkei deal emerged, then certainly pink-faced!After asserting so confidently on Tuesday that a sale was not on the cards, I was, if not red-faced when the news of the Nikkei deal emerged, then certainly pink-faced!