Tamedia strengthens role as advertising marketer with purchase of Goldbach

The mood is almost somewhat Christmassy, Tamedia CEO Christoph Tonini told the media on Friday. He said the strategic partnership between Tamedia and Goldbach was joyful news for both. "We fit together very well, our offerings complement each other perfectly."

The goal is clear: Tamedia and Goldbach want to jointly expand their position in the Swiss advertising market and become one of the marketers with the widest reach in Switzerland. They also want to drive forward foreign business in German-speaking countries. Tonini spoke of a "real opportunity for the Swiss advertising market.

Despite the merger of what Goldbach CEO Michi Frank calls "the most successful media company with the largest print and digital reach in all of Switzerland" with the "largest and most successful marketer of TV and digital video in the Swiss market," Goldbach will continue to operate as an independent company in the market.

So the initiative came from Goldbach, as Jens Alder, Chairman of the Board of Directors of Goldbach Group, said. "Broadening our business base is necessary to survive in the long term." They had been looking for a partner throughout Europe. Tamedia, however, had always been the preference, he said. "We wanted a partner who needed us."

"Price is not brilliant"

Tamedia on Friday pre-announced a public purchase offer for Goldbach Group AG at 35.50 francs per share and intends to acquire all of the advertising marketer's more than 6 million issued shares. This brings the purchase price, which is to be paid in cash, to CHF 216 million.

According to Alder, the 35.50 Swiss francs roughly correspond to the daily rate, and there is no takeover premium. He considers the price neither "brilliant" nor "exhilarating", but justifiable. After all, the aim is to secure the company in the long term.

Giving up independence is never easy, but if you enter into a strategic partnership at the peak, everyone benefits. That's why Goldbach's largest shareholders Beat Curti and the investor Veraison Sicav, who each hold just under 20 percent of Goldbach, have agreed to tender their shares to Tamedia.

Offer everything from a single source

Tamedia and Goldbach want to use their reach to develop new technologies and innovative forms of advertising for their customers. In addition, the outdoor advertising business is to be driven forward together with the company Neo Advertising, in which Tamedia holds a majority interest.

This means they can jointly offer the entire advertising range from a single source. "No one else does that, not even Admeira," said Tonini, who makes no secret of Tamedia's growth ambitions. Admeira is a marketing platform of SRG, Swisscom and Ringier.

Investment in the future

The Goldbach Group, which employs around 340 people in Switzerland, Germany and Austria, will continue to operate from its current location in Küsnacht ZH. Goldbach's CEO will remain Michi Frank, who will become a member of Tamedia's management board. According to Tonini, this will allow an exchange in both directions and both sides will benefit - Tamedia, for example, from Goldbach's sales culture.

According to Tonini, there will be no staff cuts either: "We don't want to cut costs, but invest in the future. It is conceivable, for example, that there will also be investments in more Swiss program content. "We also want to enrich the media market in Switzerland in terms of content," says the Tamedia CEO.

There are still a number of steps to be taken before the takeover is finalized. For example, the Swiss Federal Competition Commission still has to review the takeover. Tonini is confident, however, that this will be completed by the end of February/beginning of March. The actual takeover will then take place in April. If it goes through, Goldbach will be delisted from the Swiss stock exchange. (SDA)