- Posted by admin
- On October 23, 2018
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Trinity Mirror shareholders voted in February to approve the deal to add the Daily Express, Sunday Express, Daily Star and Daily Star Sunday newspapers, as well as magazines including celebrity title OK!, to its national titles the Daily Mirror, Sunday Mirror and Sunday People. The Competition and Markets Authority said on Wednesday that it was launching a phase one inquiry which will look at whether the deal will result in a substantial lessening of competition in the national newspaper sales or advertising market. The CMA said it has until 7 June to decide whether to move to a fully fledged phase two competition investigation. The CMA has also referred the deal to the Department for Digital, Culture, Media & Sport to examine, saying it considered that the transaction may raise public interest considerations. Hancock will now weigh up whether the deal triggers media plurality concerns under the Enterprise Act 2002 , which states that there is a need in relation to every different audience in the United Kingdom or in a particular area or locality of the United Kingdom, for there to be a sufficient plurality of persons with control of the media enterprises serving that audience. If he believes there may be concerns, he can ask Ofcom to look at whether the public will lose too much from a reduction in plurality with Trinity Mirror controlling so many national newspaper titles. Simon Fox, the Trinity Mirror chief executive, has repeatedly pledged that his Labour-supporting Daily and Sunday Mirror will keep Desmonds Brexit-supporting titles editorially independent. The Mirror is not going to go rightwing and the Express is not going to go leftwing, he said. They will absolutely all have editorial independence. Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk As the deal completed, however, the editors of the Daily Express and Daily Star resigned .
For the original version including any supplementary images or video, visit https://www.theguardian.com/business/2018/apr/11/trinity-mirror-deal-for-express-and-star-faces-competition-scrutiny
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Group revenue rose by 10.6% to 353.8m reflecting the acquisition of the Express and Star, but fell by 7.2% on a like-for-like basis. The fall partly reflected the company handing back two regional Metro titles to Daily Mail owner DMGT in the period. Sales of Reach’s national newspapers plunged in the first half, with circulation for the Daily Mirror down 13.9%, a 12.1% fall for the Daily Star and a 9.3% slide for the Daily Express. The overall UK national tabloid newspaper market declined by 9.3% in the period. The Sunday Mirror was down 14.8%, the Sunday People fell 16.4%, with 8.3% and 9.2% declines for the Sunday Express and Star titles respectively. Simon Fox, chief executive, said Reach had delivered a positive performance in a “difficult trading environment”. He was “reasonably optimistic” about the prospects of the regional titles despite the writedown and said they had a long-term future digitally. Reach had no plans to close print editions “at the moment” and is opening digital titles in areas such as Leeds and Edinburgh where it had no print titles, Mr Fox added. The company was on track to deliver the savings of 20m it expected from integrating the Express and Star titles, but needed growth in digital revenues to offset the continued decline from its print products, he said. Shares in Reach fell 2.6% in afternoon trading to 70.8p, valuing the company at almost 215m.
For the original version including any supplementary images or video, visit https://www.bbc.co.uk/news/business-45003639