Telegraph Group May Seek Internet Company Merger

Daily Telegraph owner Hollinger International is ready to consider affiliation arrangements with internet companies, according to restructuring plans announced yesterday. Hollinger’s UK assets include the Daily Telegraph, Sunday Telegraph and Spectator. The group also recently teamed up with Boots for the launch of women’s website handbag.com (see Telegraph And Boots Target Women With New Internet Service).

Offers considered for Telegraph group titles would allow Hollinger to retain majority control, as the company is looking at “exploring electronic associations with other groups in larger combinations.” Company chairman and chief executive, Conrad Black, said that the restructuring moves would make assets available to “facilitate the current trend to larger, consolidated multimedia entities.” It is hoped that this would breath new life into the company’s sluggish share price.

More cash proceeds to strengthen the strategic position of the company, especially with regards to new media, should come from moves to sell off most of Hollinger’s community newspaper assets in the US and Canada. The company is the largest publisher of daily and local newspapers in Canada, has 82 titles in the US and also publishes in Israel. Major titles including the Telegraph newspapers, Canada’s National Post and the US’ Chicago Sun-Times have associated websites and the company has additional stakes in internet companies through its new media venture capital arm Hollinger Ventures.

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