Ringier tightens grip on print media market
Switzerland's leading publishing house, Ringier, is to consolidate its top position by taking over some of the country's leading titles.
The Zurich-based Ringier company said that it would be buying several leading publications from the Basler Media Group, in a statement by the two firms on Thursday.
Under the deal, which still needs approval by the regulators, Ringier is to acquire the weekly “Weltwoche” newspaper, the business magazine, “Bilanz”, and the fortnightly “Beobachter” magazine, as well as other titles.
These titles are currently owned by the Jean Frey publishing house, a subsidiary of the Basler Media Group, which publishes the daily “Basler Zeitung”.
New Investment
The price for the planned deal was not disclosed, but a spokesman said the sale had been prompted by a massive drop in advertising as well as planned investments by the Basler Media Group.
It is believed that the group has lost SFr100 million ($60 million) since it became a major shareholder of the Jean Frey company in 1993.
The planned deal affects nearly 300 jobs. Trade unions have expressed their concern and warned of massive job cuts.
The Jean Frey company has changed hands twice in the past ten years and has cut two of its publications since 1999.
Market leader
The deal would allow Ringier to strengthen its position in Switzerland. Its main print products are the tabloids, “Blick” and “Sonntagsblick”, the Sunday paper, “Dimanche.ch”, as well as family magazines and other special interest publications.
In addition Ringier owns the country’s largest print centre.
It also has important business activities in Eastern Europe, mainly in the Czech Republic, Hungary and Romania.
Turnover of Ringier is expected to reach SFr1.1 billion in 2001, slightly up on the previous year. However, analysts expect profits to drop from a record SFr50 million in 2000 to SFr30 million this year.
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