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Russian billionaire to buy Evening Standard
By CMU Editorial | Published on Thursday 15 January 2009
A former KGB agent who became a billionaire after the collapse of communism in Russia is set to buy a controlling stake in the London Evening Standard, according to the Media Guardian. Alexander Lebedev will buy 75% of the paper, with current owners Associated Newspapers retaining the other 25%, after 12 months of negotiations between the two parties. According to the Guardian, Lebedev’s son Evgeny is due to sign a deal today.
It is not clear what affect the acquisition would have on the capital’s only news-stand evening title. Lebedev has said he has no interest in controlling the editorial position of the paper – and even if he did it is unlikely that would mean any bias towards the increasingly controversial Russian government, as Lebedev is widely regarded as a “semi-opposition” figure in his home country.
He also has a stake in Novaya Gazeta, one of the few Russian newspapers that is critical of the country’s political leaders. However, it is thought the new ownership could see the Standard move away from the political influence of sister title the Daily Mail, and become less right wing. Though it is likely to continue to be supportive of Tory London mayor Boris Johnson.
Commercially speaking the deal could give the Standard just the boost it needs in an increasingly competitive market. The Standard has been hurt by the growth of the internet – which gives office workers an alternative source of daytime news – and the free newspapers available to evening commuters.
Associated, of course, have their own free evening title in the capital, London Lite, launched in response to rivals News International entering the freesheet market with The London Paper in 2006. The relationship between sister titles London Lite and The Standard has always been interesting because it means Associated is competing with itself in what is already a difficult market in terms of ad revenues.
Assuming Lebedev is sitting on as much cash as is thought, and he is willing to throw a bucket of it at the Standard (and it looks like he is, he’s quoted as saying “as far as I’m concerned this has nothing to do with making money, there are lots of other ways… this is a good way to waste money”), the new owners could try and drive the London Paper out of business.
It’s not clear if Lebedev gets London Lite as part of his Standard deal – though an obvious tactic to take on the London Paper is to merger Lite and Standard and make the more weighty evening paper a freesheet.
Whatever, if this deal goes ahead there’s some interesting times ahead in the London newspaper market.
