Newsquest Takes 10% Stake In Freeserve Auctions

Regional newspaper publisher, Newsquest, has this morning announced a strategic deal to take a 9.9% stake in the auction service of leading internet service provider, Freeserve.

Newsquest is acquiring the holding in Freeserve Auctions in return for £10 million worth of advertising for the service across the group’s portfolio of regional papers and £2 million in cash. The deal will give Freeserve Auctions adspace, including classified listings, in Newsquest’s 180-plus titles for the next three years.

As result of the investment, Newsquest will discontinue the use of its AuctionHunter brand (www.auctionhunter.co.uk) and will incorporate Freeserve Auctions into its This Is network of regional newspaper websites. Following Newsquest’s investment, Freeserve Auctions will be owned 72.1% by Freeserve, 9.9% by Newsquest and 18.0% by Auctions.com.

Commenting on the deal, Newsquest chairman, Jim Brown, says: “We regard this as a very important development. For some time Newsquest-Gannett has been progressing a UK auction site but this opportunity to link with Freeserve is a huge leap forward. We both bring considerable strengths which we will capitalise on.”

Newsquest: 020 8640 8989 Freeserve/Dixons: 01442 354 285