Independent wants to expand

September 11th, 2003 | by aobaoill |

According to today’s Media Guardian, “Independent News and Media is planning a politically sensitive bid for Trinity Mirror’s Irish titles.” And well it should be politically sensitive. Independent dominate the Irish newspaper market, and their owner (Anthony O’Reilly) is chairman, and part owner, of Ireland’s main telecoms company, eircom. The Irish market needs further diversification (especially in the Sunday market) rather than further consolidation.
Interestingly, MediaGuardian’s email update cites the Independent (of London) as reporting an 8% rise in profits for INM. However, I recall Phoenix’s last annual – which, unfortunately, I don’t have with me in Illinois – as painting a less than glowing picture of the INM portfolio. Essentially, if I recall correctly, the company uses questionable accounting practices by incorporating, into the group profits, the profits of companies in which it owns only minority shares.
The Phoenix is, of course, a rather cynical periodical, but it is interesting that it has been somewhat consistent in pointing to increasing strains on the company. O’Reilly seems to be privileging size and image ahead of performance. Not to mention putting his sons in positions of power that don’t necessarily match their abilities.
In terms of the Irish market, the company’s own profile says it well:

It is Ireland’s largest media company, being the number one publisher of both national and local newspapers; the largest commercial newspaper printer; the largest newspaper wholesaler and distributor; as well as operating a fast-growing yellow page directory business. In addition, the Irish Group has a complimentary digital presence with interests in leading interactive classifieds and directory databases.

INM owns the Irish Independent and the Sunday Independent, Ireland’s largest daily and Sunday papers respectively. It owns the Evening Herald, one of two evening papers in Ireland, and the only one in Dublin and much of the rest of the country. It controls the Irish Star, a large tabloid daily, the Sunday Tribune (at arm’s length), and local newspapers. Of course, there’s other stuff I’m forgetting too.
So, if the company manages to buy the Mirror properties, it will be a case of the largest media company in the country, one which is already dominant (possibly also in the technical sense of the term), buying up other parts of the market. How they expect to have such a move pass I don’t know. Of course, it may just be a bait and switch.

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