Guardian Media Group to sell remaining stake in Auto Trader publisher Trader Media Group
Guardian Media Group has announced the sale of its 50.1 per cent stake in Trader Media Group, publisher of Auto Trader and Van Trader, to Apax Partners.
Sale: Trader Media Group is the publisher of Auto Trader
The deal will be subject to regulatory approval and the proceeds of the sale will be reinvested to “continue the safeguard the editorial and financial independence of the Guardian”.
The move follows GMG’s disposal of a 49.9 per cent stake in Trader Media Group to Apax in 2007. Bank of America Merrill Lynch and Freshfields Bruckhaus Deringer are advising GMG on the sale.
Andre Miller, CEO of GMG, said: “This proposed transaction makes strategic sense as we focus GMG’s activities on award-winning digital and print journalism. On completion, the sale-proceeds will strengthen our balance sheet and position us for further investment and growth in our core business.”
Neil Berkett, chair of the GMG Board, added: “Once completed, this deal will make GMG a very well-capitalised media organisation with the financial flexibility to navigate the rapidly-changing media environment, where our flagship titles are proven pioneers of digital and print innovation.”
In May last year, Trader Media Group announced plans to close all print editions across its portfolio in favour of a digital-first strategy following sharp falls in circulation. Print circulation of Auto Trader dropped by 341,000 in 13 years to 27,000 in March 2013.
In October 2013, GMG CEO Miller hinted that the Group’s future survival lay in pursuing a global, digital-first strategy.