Newspaper reports over the weekend have claimed the Guardian Media Group (GMG) is preparing to sell off its non-national newspaper titles, including the high profile Auto Trader series, in a move which could raise £1.7 billion.
The sale would see GMG part company with Trader Media, its classified automotive division, as well as a possible sale of the firm’s radio division. Value estimates for the assets vary in reports across yesterday’s Sunday papers, ranging from £1.7 billion according to the
Observer, to “more than £1 billion” according to the
Sunday Times.
An investment bank is due to be appointed to oversee the sale in the coming weeks, the newspapers claim, with the Sunday Times citing pressure from the online sector as the deciding factor in GMG’s reluctance to invest in its print-based classified business. However, the newspaper also claimed a sale was not inevitable.
GMG acquired Trader Media in 2003, paying almost £600 million for the 52% of the group it did not already own (see GMG Buys Up AutoTrader Publisher). The weekend’s reports made no claims about GMG’s other regional newspaper businesses, which house around 40 titles.
Last summer, GMG, reported profits almost halving, dropping to £22.9 million from £43.8 million at the same point in 2004 (see GMG Sees Profits Almost Halve).
Group turnover for GMG, increased, however by 18% to £751.9 million for the period and total operating profit was shown to be up to £122.4 million from £84.5 million
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