Independent Media announces sale to Sanoma Magazines
Amsterdam/Moscow, January 19, 2005
The Dutch shareholders of Independent Media Holding BV today announced that they have entered into an agreement to sell all the shares of IMH BV to Sanoma Magazines BV.
The transaction is subject to approval from Russian and Ukrainian competition authorities, and its closing is expected in the second quarter of this year at the latest.
"We are very proud of the achievements of Independent Media over the last 12 years. It was wonderful to be associated with such a talented group of people," says Boudewijn Poelmann, the Chairman of the Supervisory Board of Independent Media and one of the co-founders, "Launching The Moscow Times in 1992 was a very risky enterprise at that time and there were some quite critical moments, but we always managed to pull through. After so many years, it is time to think about the long term future of Independent Media, and - as founders - we feel that Independent Media is in the best of hands with Sanoma Magazines," adds Boudewijn Poelmann, "they share our values of independent journalism, quality and business transparency."
Sanoma Magazines is part of Sanoma WSOY, the leading media group in the Nordic region and the number 5 magazine company in Europe. In 2004 SanomaWSOY had net sales of approx. 2.5 billion euro, while operating in 17 countries.
Sanoma Magazines publishes over 250 magazines in ten European countries and it employs approx. 4500 people. Apart from Finland and the Benelux countries, Sanoma Magazines has a strong presence in many Central and European countries such as Hungary, the Czech Republic, Slovakia and Romania.
"Let me first of all pay tribute to the founders of Independent Media - Boudewijn Poelmann, Herman de Jong, Simon Jelsma, Frank Leeman, Annemarie van Gaal and Ruud Esser - who had the foresight to invest in Russia at a time when this country was still very much a frontier state," says CEO of Independent Media, Derk Sauer. "They took great financial risks to make it succeed. And let me immediately add that I'm not leaving Russia nor Independent Media."
"It is the explicit wish of both sides that Derk Sauer stays on as CEO of Independent Media," says Koos Guis, CEO of Sanoma Magazines International, "We look very much forward to Derk's continued leadership in the future growth of the company."
"The choice for Sanoma Magazines was not difficult," says Derk Sauer, "Its portfolio is very similar to ours - it for example publishes 6 editions of Cosmopolitan in Western and Central Europe and its business culture is also very similar to ours."
"This deal will enable us to enter new markets", adds Derk Sauer, "at a time that the Russian media landscape is changing fast and becoming even more competitive.
It's very exciting to become part of a larger family with a passion for magazines and newspapers. I'm sure we can learn a lot from each other."
***
Derk Sauer talked to the IM website about the Sanoma transaction
Q: Why did the Dutch founders decide to sell their shares?
A: As for my Dutch friends, they had different personal reasons. Some are retired, others are very involved in other businesses. Furthermore, Independent Media has become a well-established company and left the pioneer stage. This seemed a good moment to bring Independent Media into the hands of a stable and strong publisher and we really like Sanoma as a company.
Q: And what is your position?
A: During the negotiations Sanoma Magazines made it clear from the start that they wanted me to stay as CEO. That was good news, because this was also a pre-condition for me.
Both Ellen (Derk's wife and co-editor of Cosmo) and I want to stay in Russia and I love my job at Independent Media, so I'm delighted to continue as CEO.
Q: What will this deal mean for the employees?
A: In practice you will not notice much. Sanoma is a very decentralized company run by local managements. Within the company I will be responsible for Russia, Ukariane and Kazakhstan. Sanoma will also respect all the present labor agreements and conditions. As in the past we will work within the framework of agreed business plans.
Long term, I certainly expect that the Sanoma connection will make Independent Media a lot stronger. First we can learn from their experience in many other countries and use concepts and materials. Secondly, within Sanoma we will have the financial resources to enter new markets in Russia and the Ukraine. Sanoma is very growth driven and that is all good news for us.
Q: How did our partners, such as Hearst, Dow Jones and The Financial Times react?
A: They are very positive and supportive. Sanoma Magazines is Hearst's most important partner in Europe, so this is a natural fit. It has a very good image in the publishing world and is known for its scrupulous integrity and honesty.
Q: What will happen with the name Independent Media?
A: Independent Media will stay Independent Media; that's how the company is known in Russia, and besides: in our business it's not the company name that is of interest to the public. They identify with the magazine and newspaper brands.
The Dutch shareholders of Independent Media Holding BV today announced that they have entered into an agreement to sell all the shares of IMH BV to Sanoma Magazines BV.
The transaction is subject to approval from Russian and Ukrainian competition authorities, and its closing is expected in the second quarter of this year at the latest.
"We are very proud of the achievements of Independent Media over the last 12 years. It was wonderful to be associated with such a talented group of people," says Boudewijn Poelmann, the Chairman of the Supervisory Board of Independent Media and one of the co-founders, "Launching The Moscow Times in 1992 was a very risky enterprise at that time and there were some quite critical moments, but we always managed to pull through. After so many years, it is time to think about the long term future of Independent Media, and - as founders - we feel that Independent Media is in the best of hands with Sanoma Magazines," adds Boudewijn Poelmann, "they share our values of independent journalism, quality and business transparency."
Sanoma Magazines is part of Sanoma WSOY, the leading media group in the Nordic region and the number 5 magazine company in Europe. In 2004 SanomaWSOY had net sales of approx. 2.5 billion euro, while operating in 17 countries.
Sanoma Magazines publishes over 250 magazines in ten European countries and it employs approx. 4500 people. Apart from Finland and the Benelux countries, Sanoma Magazines has a strong presence in many Central and European countries such as Hungary, the Czech Republic, Slovakia and Romania.
"Let me first of all pay tribute to the founders of Independent Media - Boudewijn Poelmann, Herman de Jong, Simon Jelsma, Frank Leeman, Annemarie van Gaal and Ruud Esser - who had the foresight to invest in Russia at a time when this country was still very much a frontier state," says CEO of Independent Media, Derk Sauer. "They took great financial risks to make it succeed. And let me immediately add that I'm not leaving Russia nor Independent Media."
"It is the explicit wish of both sides that Derk Sauer stays on as CEO of Independent Media," says Koos Guis, CEO of Sanoma Magazines International, "We look very much forward to Derk's continued leadership in the future growth of the company."
"The choice for Sanoma Magazines was not difficult," says Derk Sauer, "Its portfolio is very similar to ours - it for example publishes 6 editions of Cosmopolitan in Western and Central Europe and its business culture is also very similar to ours."
"This deal will enable us to enter new markets", adds Derk Sauer, "at a time that the Russian media landscape is changing fast and becoming even more competitive.
It's very exciting to become part of a larger family with a passion for magazines and newspapers. I'm sure we can learn a lot from each other."
***
Derk Sauer talked to the IM website about the Sanoma transaction
Q: Why did the Dutch founders decide to sell their shares?
A: As for my Dutch friends, they had different personal reasons. Some are retired, others are very involved in other businesses. Furthermore, Independent Media has become a well-established company and left the pioneer stage. This seemed a good moment to bring Independent Media into the hands of a stable and strong publisher and we really like Sanoma as a company.
Q: And what is your position?
A: During the negotiations Sanoma Magazines made it clear from the start that they wanted me to stay as CEO. That was good news, because this was also a pre-condition for me.
Both Ellen (Derk's wife and co-editor of Cosmo) and I want to stay in Russia and I love my job at Independent Media, so I'm delighted to continue as CEO.
Q: What will this deal mean for the employees?
A: In practice you will not notice much. Sanoma is a very decentralized company run by local managements. Within the company I will be responsible for Russia, Ukariane and Kazakhstan. Sanoma will also respect all the present labor agreements and conditions. As in the past we will work within the framework of agreed business plans.
Long term, I certainly expect that the Sanoma connection will make Independent Media a lot stronger. First we can learn from their experience in many other countries and use concepts and materials. Secondly, within Sanoma we will have the financial resources to enter new markets in Russia and the Ukraine. Sanoma is very growth driven and that is all good news for us.
Q: How did our partners, such as Hearst, Dow Jones and The Financial Times react?
A: They are very positive and supportive. Sanoma Magazines is Hearst's most important partner in Europe, so this is a natural fit. It has a very good image in the publishing world and is known for its scrupulous integrity and honesty.
Q: What will happen with the name Independent Media?
A: Independent Media will stay Independent Media; that's how the company is known in Russia, and besides: in our business it's not the company name that is of interest to the public. They identify with the magazine and newspaper brands.
