Is that allowed?
Column If Süddeutscher Verlag is auctioned off, the biggest tragedy of the daily press in German post-war history is looming.
Column If Süddeutscher Verlag is put up for auction, the biggest tragedy of the daily press in German post-war history is looming.The owners of Süddeutsche Zeitung, the flagship of the German daily press par excellence, are once again in turmoil. What has already brought Süddeutscher Verlag and its prestigious title into serious difficulties in the past is continuing, following an internal logic: too many cooks spoil the broth. In the case of Süddeutsche, it is the five owning families who, to this day, do not see eye to eye on the strategic direction of their company. For some time now, the permanent question of a sale has therefore been brooded over. In the past, thinking in terms of returns and failing to make the necessary financial injections during the crisis years of the German-language press had already allowed the publishing house to slip a hair's breadth past a debt restructuring moratorium for months. The question arises as to whether it is permissible to treat proven democratic communication instruments in this way, even if, or precisely because, they are privately run.
Five years ago, the course was set for today's raging bickering over the sale of the publishing house, and the question "Is this allowed?" arises again. Because it is still far from clear whether Süddeutsche will pass into responsible hands in terms of journalism and publishing. It would certainly be good for the flagship to see some peace and quiet. Ever since the Südwestdeutsche Medienholding (including Stuttgarter Nachrichten) was brought on board as the sixth partner by the families for 150 million euros and 18.75 percent in 2002, thus sparing SZ-Verlag from bankruptcy at the last minute, all hell has broken loose in Munich from time to time. Because the hardliners at SWMH are mercilessly pushing for profit optimization. For example, the closure of the SZ edition in North Rhine-Westphalia, a recognized spearhead against the regional titles of Neven DuMont and the WaZ Group, turned into a human tragedy for the employees there. The youth magazine Jetzt also disappeared. Irritated young people even reinforced their outcry with public protests. At the insistence of SWMH, practically all of SZ's regional editorial offices were closed. At times, there were rumors that SWMH wanted to reduce SZ to a purely regional newspaper. However, the weight of the Süddeutsche Zeitung brand was stronger, and the decision was made to focus on supra-regional topics and expand foreign reporting, where it was possible to work together with other media houses (e.g. Tages-Anzeiger) at low cost.
The brash course also brought its operational hero, CEO Klaus Lutz, into play, who caused a sensation and envy in the industry with clever side business models, above all with the widely acclaimed (and copied) SZ-Bibliothek book edition. When Lutz began selling a SZ wine edition (with wines imported from Switzerland) last fall, the editors turned up their noses at how much brand expansion would be beneficial to the title. Nevertheless, Lutz's hands are tied as long as the question of ownership has not been resolved. The launch of a SZ am Sonntag planned for this spring is thus postponed indefinitely. This means that SZ will not be able to provide the necessary journalistic boost. In addition, SWMH is said to have demanded a profit target of 72 million euros from SZ-Verlag for the past financial year alone. That doesn't leave much room for maneuver.
It has long been clear that SWMH is seeking to acquire a majority stake in SZ Verlag and is insisting on its pre-emptive rights. It is backed by Medien-Union, which may not make much of a name for itself in southern Germany, but which is known for its long-term calculations and is not always a shady company. Until recently, none other than its own managing director Oliver C. Dubber played a leading role in ownership matters on the steering committee and later on the supervisory board.
In the meantime, however, more ropes have been torn. The asking price of the owner families (over 1 billion euros) exceeds that of SWMH (750 million euros). SWMH has withdrawn its representatives. The Hamburger Zeit suspects that an auction is likely. In addition to interested publishers (WaZ, Holzbrinck and Swiss publishers), this would also open the door to locusts. If they were to strike, the case could go down in German post-war history as the greatest tragedy of the German daily press.
René Worni is media editor of Werbewoche.
Five years ago, the course was set for today's raging bickering over the sale of the publishing house, and the question "Is this allowed?" arises again. Because it is still far from clear whether Süddeutsche will pass into responsible hands in terms of journalism and publishing. It would certainly be good for the flagship to see some peace and quiet. Ever since the Südwestdeutsche Medienholding (including Stuttgarter Nachrichten) was brought on board as the sixth partner by the families for 150 million euros and 18.75 percent in 2002, thus sparing SZ-Verlag from bankruptcy at the last minute, all hell has broken loose in Munich from time to time. Because the hardliners at SWMH are mercilessly pushing for profit optimization. For example, the closure of the SZ edition in North Rhine-Westphalia, a recognized spearhead against the regional titles of Neven DuMont and the WaZ Group, turned into a human tragedy for the employees there. The youth magazine Jetzt also disappeared. Irritated young people even reinforced their outcry with public protests. At the insistence of SWMH, practically all of SZ's regional editorial offices were closed. At times, there were rumors that SWMH wanted to reduce SZ to a purely regional newspaper. However, the weight of the Süddeutsche Zeitung brand was stronger, and the decision was made to focus on supra-regional topics and expand foreign reporting, where it was possible to work together with other media houses (e.g. Tages-Anzeiger) at low cost.
The brash course also brought its operational hero, CEO Klaus Lutz, into play, who caused a sensation and envy in the industry with clever side business models, above all with the widely acclaimed (and copied) SZ-Bibliothek book edition. When Lutz began selling a SZ wine edition (with wines imported from Switzerland) last fall, the editors turned up their noses at how much brand expansion would be beneficial to the title. Nevertheless, Lutz's hands are tied as long as the question of ownership has not been resolved. The launch of a SZ am Sonntag planned for this spring is thus postponed indefinitely. This means that SZ will not be able to provide the necessary journalistic boost. In addition, SWMH is said to have demanded a profit target of 72 million euros from SZ-Verlag for the past financial year alone. That doesn't leave much room for maneuver.
It has long been clear that SWMH is seeking to acquire a majority stake in SZ Verlag and is insisting on its pre-emptive rights. It is backed by Medien-Union, which may not make much of a name for itself in southern Germany, but which is known for its long-term calculations and is not always a shady company. Until recently, none other than its own managing director Oliver C. Dubber played a leading role in ownership matters on the steering committee and later on the supervisory board.
In the meantime, however, more ropes have been torn. The asking price of the owner families (over 1 billion euros) exceeds that of SWMH (750 million euros). SWMH has withdrawn its representatives. The Hamburger Zeit suspects that an auction is likely. In addition to interested publishers (WaZ, Holzbrinck and Swiss publishers), this would also open the door to locusts. If they were to strike, the case could go down in German post-war history as the greatest tragedy of the German daily press.
René Worni is media editor of Werbewoche.
