Publishing Giants To Compete For SMG Titles

The publishing assets of SMG, which were put up for sale earlier this month, have attracted considerable interest from the UK’s prominent newspaper groups but many analysts believe that the company’s valuation is excessive given current market conditions.

SMG has decided to concentrate its attention on television and radio advertising and is looking to reduce debts of £400 million. It recently announced that pre-tax profits fell by almost a half to £11.5 million in the first six months of the year.

The publishing arm includes the Herald group of titles and eleven business to business and specialist consumer magazines. SMG is hoping to make as much as £200 million from the sale but this is considered unlikely in the depressed newspaper market.

The first round of bidding has now drawn to a close and interested parties are believed to include the Guardian Media Group, the Daily Mail & General Trust, Associated Newspapers, Johnston Press, Independent News & Media and the Barclay Brothers, owners of The Scotsman.

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