Thomson Reuters has rebuffed takeover interest in its Reuters news wire, betting instead on a dealmaking media executive to turn round the 168-year-old business, reports Andrew Edgecliffe-Johnson, Anna Nicolau, James Fontanella-Khan and Alex Barker of the Financial Times.
Edgecliffe-Johnson, Nicolau, Fontanella-Khan and Barker report, “Several would-be buyers have approached the company and intermediaries in recent months, the people said, adding that KKR-backed German media business Axel Springer and a group of individuals including former Reuters editor-in-chief and ITN boss Mark Wood were among the interested parties.
“No talks are active and hurdles may make a deal impossible, according to the people. But they said the suitors saw an opportunity to burnish a trusted, but low-margin global news brand, at a time of flux at its parent company.
“Thomson Reuters, Axel Springer and Mr Wood declined to comment.
“Some would-be suitors see Reuters News as an orphan asset after Thomson Reuters last year sold a majority stake in its financial data business to Blackstone for $17bn. The news operation contributes less than 3 per cent of group earnings and sits in a company now dominated by legal and corporate services.”
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