According to Press Gazzette, the Northcliffe local newspaper group may be split up following the news earlier this week that its owners, the Daily Mail & General Trust, are planning on selling it. DMGT surprised much of the newspaper industry by announcing the sale of Northcliffe, the profits of which should help pay off debts elsewhere in the group. Experts say it is unlikely that any of Northcliffe's competitors - Trinity Mirror, Newsquest or Johnston Press - will be able to buy it because of media ownership rules which prevent more than one player from owning more than 25% of the market. Therefore investment types say a venture capital buyer is more likely. They will take it over, cut costs, then sell off each title one by one - probably to each of the three rival groups. Analyst Paul Richards, from Numis Securities, told the Press Gazette: "Private equity looks like the most likely option. There is a lot of private equity money around looking for good homes."
Dec 2, 2005
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1 min read
Northcliffe likely to be split up
Following DMGT's plan to sell its Northcliffe local newspaper group, analysts expect a venture capital buyer might break it up and sell titles to rival groups.