Splitting the company and focusing on marketplaces
- Schibsted to sell news-media operations in a $569 million deal
- Main news-media operations to be taken over by largest shareholder
- Schibsted’s marketplaces business to remain publicly listed
- Cash proceeds to be returned to shareholders
- Deal expected to be completed in the first half of 2024
Norwegian media group Schibsted has announced plans to split into two companies, with its main news-media operations being sold to its largest shareholder in a deal worth $568.8 million. The news-media business will be carved out into a separate company and privately held by Tinius Trust, while Schibsted’s marketplaces business will remain publicly listed. The deal is expected to be completed in the first half of 2024, and cash proceeds will be returned to shareholders. This move aims to improve the earnings visibility of the remaining Schibsted business and reduce its exposure to advertising revenue. Schibsted’s news-media business includes several Scandinavian news outlets. The company will also remove its dual-class share structure as part of the deal, which should improve liquidity. The Tinius Trust will retain its 26.3% stake in the remaining listed Schibsted company. Schibsted previously spun off its Adevinta online classified-advertising business in 2019.
Public Companies: Schibsted (N/A), Adevinta (N/A), Permira (N/A), Blackstone (N/A)
Private Companies: Tinius Trust
Key People: Rune Bjerke (Schibsted Deputy Chairman), Jo Barnet-Lamb (UBS analyst)
Factuality Level: 8
Justification: The article provides factual information about the split of Norwegian media group Schibsted into two companies, with its news-media operations being taken over by its largest shareholder. It mentions the deal value, the separate listing of the marketplaces business, and the return of cash proceeds to shareholders. The article also includes quotes from Schibsted’s Deputy Chairman and an analyst. There is no obvious bias or opinion masquerading as fact in the article.
Noise Level: 6
Justification: The article provides information about the split of Norwegian media group Schibsted into two companies, with its main news-media operations being taken over by its largest shareholder. It also mentions the valuation of the news-media business and the removal of the dual-share structure. However, the article lacks in-depth analysis, evidence, and actionable insights. It mainly focuses on the financial aspects of the deal and does not explore the consequences for stakeholders or the long-term trends in the media industry.
Financial Relevance: Yes
Financial Markets Impacted: The news article pertains to the financial markets as it discusses the split of Norwegian media group Schibsted into two companies and the impact on its shareholders and stock prices.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article does not mention any extreme events or their impact.
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