Metro Newspapers Sold to Former CEO
Seabay Media Holdings was established by Pelle Törnberg, who formerly ran the free media chain.
May 11, 2009
Metro International SA, the international newspaper group’s American holdings were sold to Pelle Törnberg’s Seabay Media Holdings.
Metro USA publishes the free daily newspaper Metro in New York and in Philadelphia; the paper also has a partnership with the Boston Globe, a subsidiary of the New York Times that could be subjected to closure because of continuing financial losses.
The three newspapers have a combined circulation of 590,000 daily copies and approximately 1.2 Million readers in the US, which is the biggest advertising market in the world. Seabay will continue producing newspapers in all three markets and will remain in Metro International’s global advertising packages.
Financial terms were not disclosed, although the book effect of the transaction is estimated to be around have the seller taking a small loss. Closing is subject to completion of definitive agreements and customary pre-closing conditions. The transaction is expected to be complete by June 1.
“After a rough 2007, we have seen many improvements in Metro USA and losses have decreased significantly,” said Metro International president and chief executive Per Mikael Jensen. “I'm confident that Metro USA will reach profitability and steady growth."
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