Evening Standard sale a smart move for DMGT

Daily Mail & General Trust’s sale of the Evening Standard to Russian oligarch Alexander Lebedev, confirmed yesterday, is a smart move for the ailing newspaper group.

Lebedev may only be paying a nominal sum, but he takes responsibility for a reported £10m a year loss while remaining committed to renting DMGT’s office space, sharing back office costs, printing facilities and distribution.

Family businesses can take a long view and the current Lord Rothermere may have an eye to his successors’ inheritance. DMGT retains a significant minority stake and so is well placed to take the newspaper back should Lebedev grow tired of it or his circumstances change.

In time the Standard will return to the fold, Lord Rothermere may reason. Or conditions might worsen still, the Daily Mail stumble and DMGT emerge as a boring, but profitable, business to business publisher.

Posted at : January 22nd, 2009 - 11:31 am
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