Once it was a giant of printed media; now Schibsted has announced it will divest its remaining news businesses to focus on marketplaces.
The announcement comes almost five years after divesting Adevinta – in which it remains the largest shareholder – and will see the Norway-based company sell off its news media assets.
News media operations are beung moved into Tinius Trust, with which Schibsted has reached a non-binding agreement covering its news media operations for about ten per cent of its market cap – at an agreed NOK6.2 billion (A$860 million).
Tinius is Schibsted’s biggest shareholder, with about 26 per cent.
Schibsted’s Nordic Marketplaces division will remain on the Oslo stock exchange, where Tinius will retain a controlling interest.
The move comes four years after Schibsted spun off Adevinta, which then operated in 16 countries in Europe, Latin America and North Africa.
In the Nordic region, Schibsted is the dominant marketplace operator with Finn (Norway), Blocket (Sweden), Oikotie/Tori (Finland) and Bilbasen/DBA (Denmark).
Since the spin-off, Adevinta has sold off assets to focus on Germany, France, Italy, Spain and Benelux.
Schibsted says its public commitment to reduce its ownership in Adevinta –last March – opened up “new strategic options” for Schibsted and Tinius, leading up to the new announcement.
Schibsted chief executive Kristin Skogen Lund (pictured) said the announcement marked “another historic moment” for Schibsted, allowing its current two core businesses to better realise their full potential as separate companies. “We are convinced that this move will benefit our stakeholders, and we will do our utmost to ensure a good transition and prepare for exciting futures for the two entities.”
Tinius Trust chairman Ole Jacob Sunde – who is also chairman of the Scott Trust which owns the Guardian in the UK – says both Schibsted’s media and marketplaces business will benefit from “focussing on their respective business areas.
“This will ensure full attention to both areas without them having to compete for capital and resources,” he said.