Fear of gigantism
Commuter Newspaper: 20 Minuten Holding feared that the planned Express would ruin its own newspaper's reputation.
Commuter newspaper 20 Minuten Holding feared that the planned Express would ruin its own paper's image.why is 20 Minuten Holding already prepared to cede parts of its Swiss subsidiary to Tamedia? It could certainly have demanded more thanks to the foreseeable further increase in readership figures in the fall. However, the planned Express circulation of 330000 copies apparently made an impression on the holding company. "We would have been forced to increase our circulation in the Zurich area as well," says Chris Tanner, who represents the Müller-Möhl heirs and other Swiss shareholders on the board of 20 Minuten Holding. This would not only have cost a lot, but would also have ruined 20 Minuten's image: "Twice as many newspapers on the street, more aggressive distribution and a larger mountain of waste would have jeopardized our current acceptance," says Tanner, explaining the exit.
Tanner does not accept the objection that 20 Minuten would hardly have needed more copies thanks to its wide reach and clear target group. "The gigantism of the Express would have undermined our position with advertisers," he says. Even if 20 Minuten had won in the end, it would have cost a lot of money and goodwill and would have resulted in losses. And it would hardly have been possible to achieve any reasonable proceeds for the investors.
Furthermore, both Tanner and Christian Stahl, responsible for media investments at Apax, emphasize that the shareholder structure of 20 Minuten Holding will remain the same. Apax will continue to hold 27.8 percent, the Swiss shareholders 29.1 percent and Schibsted the remainder. It is not individual shareholders who are selling shares, but the holding company, which is withdrawing from its 100 percent subsidiary 20 Minuten Schweiz. The brand rights for Switzerland, which are currently held by the holding company, are to be transferred to 20 Minuten Schweiz and then to Tamedia at the end of 2006 following the approval of the Competition Commission. >> p. 16-17
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Tanner does not accept the objection that 20 Minuten would hardly have needed more copies thanks to its wide reach and clear target group. "The gigantism of the Express would have undermined our position with advertisers," he says. Even if 20 Minuten had won in the end, it would have cost a lot of money and goodwill and would have resulted in losses. And it would hardly have been possible to achieve any reasonable proceeds for the investors.
Furthermore, both Tanner and Christian Stahl, responsible for media investments at Apax, emphasize that the shareholder structure of 20 Minuten Holding will remain the same. Apax will continue to hold 27.8 percent, the Swiss shareholders 29.1 percent and Schibsted the remainder. It is not individual shareholders who are selling shares, but the holding company, which is withdrawing from its 100 percent subsidiary 20 Minuten Schweiz. The brand rights for Switzerland, which are currently held by the holding company, are to be transferred to 20 Minuten Schweiz and then to Tamedia at the end of 2006 following the approval of the Competition Commission. >> p. 16-17
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