Is the Independent being sold? There's something happening, what is it exactly? Independent News and Media Chief Executive Gavin O'Reilly has said today there have been no talks with Russian billionaire Alexander Lebedev.O'Reilly's comments follow yesterday's lunchtime story that Lebedev was in advanced talks about buying the paper. Speaking today to a Dow Jones reporter at IN&M's annual general meeting O'Reilly said that he's received no offer for the group's UK titles and has had no discussions."The board hasn't received any offer whatsoever from Mr Lebedev. The press has got ahead of itself."I've had no discussions [with Lebedev]. The board has had no discussion." It's an interesting turn of phrase -- the bit about "the press getting ahead of itself". It could simply be that there's no story, but it seems from the various reports I've read that there is something is going on.Maybe it isn't a sale. Maybe only closer relations (so to speak). I still think anyone would be bonkers to buy The Independent outright. It makes no sense - even if you're a billionaire. The future is not bright for The Independent. It still remains a candidate for becoming an online-only title. I've written about this once (No independent future - merger, digital or bust) or twice (The end of print for The Independent?) before.
Oh yeah and while we're on the subject why would you buy The Independent when you have just taken on another money pit, the London Evening Standard. Twitter me that.People usually answer this question by saying that a tie-up between Independent and the Evening Standard would save costs. I'm sure some would be saved. But the Standard is a London Evening News paper and the Independent is an (under funded) national newspaper so just how many savings will there be for example on the editorial front? I think the answer is less than people think and more than you would care for.
There are also serious money issues to be solved; IN&M is struggling to complete a €200m (£170m) refinancing deal.Funnily enough The Times says that Lebedev "is reluctant to take on 'all the liabilities', according to one source familiar with the discussions". It also mentions issues about Lebedev's financial position after reports that he was temporarily unable to pay journalists on his Russian newspaper, Novaya Gazeta, in May. He is said to have lost a great deal of cash in the downturn. However, he claims to be worth over $2bn – I guess you would if you want to hang onto the title "billionaire".
Billionaire is such a bold and evocative word and, clearly, Lebedev is a bold individual. He did not get where he is without taking risks and there is no doubt that if this talk turns out to be correct, proves to be more than media gossip, then this would certainly qualify as another bold roll.
Update: I see that Media Guardian is reporting that Daily Mail & General Trust is considering taking a stake in the Independent titles should they be acquired by Lebedev. It quotes senior industry sources saying that the Daily Mail owner could take a 25% stake in the combined business...which would also incorporate the Evening Standard that it just got rid off? Hmm, guess we'll know soon enough.
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Gordon Macmillan
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