THG has snapped up London-based business newspaper City AM in surprise last minute bid to save it from the brink of insolvency, securing the future of its roughly 40-strong workforce.
The Cult Beauty and Look Fantastic owner has never owned a newspaper but does have an online publishing arm with two magazines.
THG has committed to the editorial independence of the paper and will not be closing the print arm of the company.
The free to read London-based newspaper was put up for sale earlier in July after it was hit by the pandemic and a reduction in commuters.
City AM co-founder Lawson Muncaster said the deal was “brilliant news.”
The acquisition will see co-founder and City Am chief executive Jens Torpe retiring from the business, while its 40 editorial and commercial staff will join the THG Group.
Muncaster, who owns a quarter of the business, said the deal would help it develop its online presence, which it hadn’t been able to do before due to funding issues.
He told the BBC THG’s previous experience in online publishing makes him optimistic about the newspaper’s future.
“We can draw on THG’s expertise and given they are a global business this is a chance to get our content out on an international level.”
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THG founder Matthew Moulding said the deal would help it reach a new audience.
“We’ve long been reviewing opportunities in the disruptive media space but have waited for the right time and the right opportunity to make a digital step-change” he said.
In a lengthy Linkedin post, he added: “Like with all our other media assets, neither I nor the Board will be driving editorial content, there are far more talented people out there to do this. But there’s a clear gap in the UK business media, one that supports and appreciates UK business, and is keen to see the UK improve our global competitiveness. CityAM, THG, and our partners, will now step up further to fill this gap, loud and clear.”
And so, supported by unswerving investment from THG, there will be just one rule for the future editorial direction of CityAM:
“Where possible, be a cheerleader for both the UK and businesses alike, and don’t get dragged over to the dark side.”
THG’s bid comes as a surprise after Moulding called out the media earlier this year in a lengthy social media rant.
In a video shared on LinkedIn, Moulding featured negative newspaper headlines about his company alongside stats about THG’s growth and expansion arguing that it had “sadly become standard practice” for the media to “regularly build negative coverage”.
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