Rumours Surround Future Of Independent Ownership

The ownership of Newspaper Publishing, the group which produces The Independent, appears to be hanging in the balance as discussions are underway between the group’s two principal owners Mirror Group Newspapers and Independent Newspapers, both of which have a 46% share in Newspaper Publishing.

It is reported in the national press today that the Irish group Independent Newspapers is liable to buy the Mirror Group’s share of Newspaper Publishing and run The Independent.

Independent Newspapers’ chairman Tony O’Reilly is believed to be interested in owning a national newspaper. O’Reilly’s strategy of funding The Independent to maintain an upmarket status is reportedly at odds with David Montgomery, Mirror Group chief executive, who has been cost-cutting the paper for some time.

Reports claim that both parties have agreed in principle to passing control to one of the two groups; Mirror Group is believed to be interested in disposing of The Independent as it has continued to lose circulation despite an expensive and radical redesign.

A Mirror Group spokesperson told Newsline that reports suggesting that there would be an announcement on these matters accompanying the Mirror Group’s financial results on Monday are premature. He said that there was unlikely to be a ‘denouement‘ in the near future. He went on to say that there were ‘a number of options’ of resolving a satisfactory position, none of which was taking precedence over another; he denied that the Group was seeking to rid itself of Newspaper Publishing and The Independent titles. Both parties are said to be working ‘closer than ever’.

No-one at Independent Newspapers was available to comment when contacted by Newsline.

Mirror Group c/o Financial Dynamics: 0171 831 3113