Finnish media group Sanoma to strengthen its position in European media markets
The Sanoma Group will integrate its divisions Sanoma Entertainment and Sanoma Magazines to form a new division - Sanoma Media - as of January 1st, 2011.
The integration will enable Sanoma to profit from its television know-how in Finland also internationally as well as further strengthen Sanoma Magazines' market positions in Europe.
The present Sanoma Entertainment includes Finnish TV and radio operator Nelonen Media and the online games unit Sanoma Games.
Publishing magazines in 13 countries, Sanoma Magazines has a strong market position in Europe.
According to Eija Ailasmaa, the future President and CEO of Sanoma Media, the market knowledge gained by Sanoma Magazines will be used to benefit the company’s television know-how even internationally.
”Acquisitions, partnerships, and copying existing media concepts in other markets are alternatives which can all come into question. The palette of options we are considering is quite wide”, Ailasmaa comments.
The television operations could also be built around the company’s existing media concepts, Ailasmaa estimates.
Even magazines will benefit from the television know-how.
”Following the development of digital operations, there will be a growing demand for audiovisual content”, Ailasmaa adds.
There will also be a growing demand for moving images to be used on magazines’ websites and iPad applications, as well as other reading devices.
In the summer, Sanoma Entertainment sold its cable television operator Welho to the DNA telecommunications group.
”Naturally the Welho transaction was significant, as it triggered a need to seek growth. In Finland, growth prospects [in the television sector] are small, which is why we had to look for growth elsewhere in Europe”, Ailasmaa notes.
In the future, Anu Nissinen, the President of Sanoma Entertainment, will be responsible for the television and online gaming operations and report to President and CEO Eija Ailasmaa.
Reportedly, the arrangement is not foreseen to affect the number of employees.
After the combination, Sanoma will have four divisions: Sanoma Media, Sanoma News, Sanoma Learning & Literature, and Sanoma Trade.
Helsingin Sanomat, the largest daily in the Nordic region by circulation, is published by Sanoma News.
Sanoma Corporation stock exchange release 4.11.2010