SanomaWSOY buys Finnish edition of free distribution newspaper Metro

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The free-distribution city newspaper Metro is being taken over by Sanoma Corporation, which is part of the media company SanomaWSOY. The company announced on Friday that it had bought the Finnish edition of Metro from Metro International SA, and that the transfer of ownership will take place in early September.
      Sanoma Oy CEO Mikael Pentikäinen notes that Metro has nearly 300,000 readers in the Helsinki region, making it Finland’s fifth most widely-read news publication.
      Sanoma has owned the newspaper’s main rival, Uutislehti 100, which is locked in a battle for readers in public transport, shopping malls, and on the streets of the Helsinki region.
     
Pentikäinen promises that Sanoma will continue to publish both newspapers.
      "Newspapers like Metro and Uutislehti 100 are experiencing strong growth. In the future we will be able to produce urban newspapers much more efficiently than before, and we can revitalise our activities through sensible cooperation", he says.
      Uutislehti 100 is a newspaper specifically for the Helsinki region, whereas Metro has more national coverage.
     
In the deal, publishing activities of Metro will transfer to Sanoma. At the same time the company is undertaking a franchising contract with Metro International SA, thus keeping the Finnish version under the international brand.
      Pentikäinen believes that the deal will hasten the arrival of the day that the newspapers begin to show a profit.
      Both the Finnish Metro, with a turnover of EUR 4.8 million last year, and Uutislehti 100, whose turnover was EUR 5.8 million, have been running at a loss.
      Metro has 39 employees, most of whom are expected to stay on under the new ownership. "However, it is likely that not all will have enough to do in the long run", Pentikäinen says.
     
The international Metro is the fastest-growing urban newspaper in the world.
      In just over ten years it has spread from Stockholm to 93 large cities in 21 countries. The different editions of Metro have an estimated combined daily readership of nearly 19 million.
      Pelle Törnberg, CEO of Metro International, said in a press release that he believes that the deal will benefit both parties.
      "It helps Metro maintain international accessibility, and the European-wide distribution network, which is important for our advertisers. At the same time it helps Sanoma develop the field of Finnish urban newspapers under the Metro brand", Törnberg says.


Links:
  Metro International

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