20 August, 2011

Norwegian media group sold its business in Russia

Norwegian media group Schibsted, operating in 25 countries, refused to businesses in Russia. Having sold more in 2009, local partners, the newspaper "Moy Rayon" in Moscow, the Norwegians came out and now the founders of "My area" in St. Petersburg. This is one of the most popular books in the city last February started talking about the possible resignation of the governor of St. Petersburg Valentina Matvienko, and then subjected to the opinion of the editorial board, "unprecedented pressure".

On the Russian market the Norwegian Schibsted out in the spring of 2006, bought for $ 3.3 million 66.7% of LLC "Regional independent newspapers of the North-West", published in St. Petersburg since 2002, a free weekly "My Area". Content of this paper differs from the distribution area: a local news will be limited to 40% of output. For each specific area is going, and advertising. Now in St. Petersburg comes ten variations of "My Area". Audience of one number on the average, according to TNS Russia for December 2010 - April of 2011, 543.3 thousand persons over 16 years. From this figure weekly in St. Petersburg, above only "AIF" (690.4 thousand) and TV Guide, "Antenna-Telesem" (642.3 thousand), whereas, for example, at Friday's "plump", "Komsomolskaya Pravda", he is only 422.5 thousand people.

Also in 2006 Schibsted has invested approximately $ 4.4 million to launch "My area" in Moscow. Initially, weekly capital model was the same as in St. Petersburg, but in a crisis, the fall of 2008 the publisher was forced to abandon the localization of content. Now in Moscow go nine versions of "My Area", which differs only advertising. Weekly audience in the capital, according to TNS Russia, - 516,2 thousand people. For comparison: the "AIF" - 1.387 million, the "Antenna-Telesem" - 1.396 million, from Friday, "Komsomolskaya Pravda" - 1.025 million

Of losing "my district" in Moscow has got rid of Schibsted in 2009, sold his share to management. Weekly for the capital was created a separate legal entity - LLC "Independent regional newspapers Center," which became the founders of the founder of "my area" Grigory Kunis, his brother Dmitri, Yuri Joffe. From the project in St. Petersburg, Norwegian group then did not give up, on the contrary, taking advantage of an option, even increased in 2009, its share to 79.4%.

But this year, Schibsted decided to still leave the Russian market, according to "Kommersant" the group's spokesman Anders Rikter. According to him, has been revised international strategy, and now outside of its core markets - the Nordic and Baltic countries - Schibsted is only interested in specializing in advertising online resources. Group's share of LLC "Independent regional newspapers North-West" last June bought Grigory Kunis. Amount of the deal not disclosed. Mr. Kunis said only that it was less than the initial investment Schibsted. In 2010, the newspaper in St. Petersburg, has worked at a loss, but this is expected to reach self-sufficiency, said Grigory Kunis.

Founded in 1839 by a group Schibsted is represented in 25 countries. In particular, it publishes daily Aftenposten in Norway, Svenska Dagbladet in Sweden, 20 Free Minutes in France and Spain. Revenue in 2010 - 13.768 billion Norwegian crowns (€ 1,75 billion), net profit - 2.931 billion kroner (€ 373 million). Capitalization yesterday - 15.844 billion kroner (€ 2,01 billion).

Schibsted of care was preceded by Russia, according to the St. Petersburg version of "My Area", "unprecedented pressure" on the paper. In February, the weekly published an article entitled "Seeing Matvienko: everything is ready, it's time to start?" Where politicians were discussing whether Moscow has announced an information attack on the administration of Valentina Matvienko. After that, in respect of the publication was started by an unscheduled tax inspection, and the retail network, "Okay," contrary to the treaty against the spread of newspapers declined in its hypermarkets. Member of the Board of Directors of "independent regional newspapers North-West" Bernard Moore even sent a letter in March, Governor Valentina Matvienko, trying to get her attention "to the unacceptable actions of subordinates." In response, the administration assured the publication of Smolny, in Russia the pressure on the media is against the law. In May, "my district" said the unscheduled tax inspection is completed, no violations were found.

This story scared off by "my area" of advertisers, that could become an additional incentive for Schibsted departure from the Russian market, admits Gregory Kunis. However, he assured that the editorial policy of the newspaper after the change of the founders will remain unchanged

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