Axel Springer Russia head Regina von Fleming at the 2007 Millionaire Fair in Moscow
Photo: Valery Levitin
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Axel Springer Doesn't Sell
Axel Springer AG has MB>changed its mind about selling its Russian business. It sent letters to that effect to Kommersant Publishing House and Independent Media Sanoma Magazines (IMSM) at the end of last week. The Russian subsidiary of the German media giant publishes Russian editions of Forbes, Newsweek and OK magazines under license, as well as its own ComputerBild. The company's Russian subsidiary is estimated to have had a turnover of ˆ15 million in 2006.
Reports of Springer's desire to find a Russian partner for its Russian subsidiary emerged in February of last year. It unsuccessfully negotiated a stock exchange with several Russian publishing groups. By August, Ashet Shilippaki Shkulev, IMSM and UFG Private Equity (owner of 49 percent of Zhizn (Life) newspaper) had withdrawn from negotiations, and Kommersant became the main contender for the company. Negotiations with Kommersant were nearing a close, when IMSM renewed negotiations with Springer at the end of November.
Observers say that Springer's about-face can be blamed on the explosive growth of the Russian media market in 2007, with income levels running at 20-30 percent. Sources say that the decision to leave the Russian market was made by the owner of the controlling package in the firm, widow of the founder Frieda Springer, after the murder of journalist Anna Politkovskaya, but company executives convinced her to change her stance to refraining from further investments in Russia. Then they were forced to seek new sources of investment in Russia. Its is noticeable that Springer did not increase its market presence last year.
www.kommersant.com
All the Article in Russian as of Jan. 29, 2008
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