Showing posts with label Lebedev. Show all posts
Showing posts with label Lebedev. Show all posts

Mar 1, 2010

Ex-KGB media mogul pays £1 to buy second British newspaper - RT Top Stories

Ex-KGB media mogul pays £1 to buy second British newspaper - RT Top Stories

Published 01 March, 2010, 16:12


Russian tycoon and owner of the National Reserve Bank, Aleksandr Lebedev, has added another British newspaper to his media empire.
According to British reports he bought The Independent for the token price of £1 – the same as it costs to buy one copy of the newspaper.
Lebedev is taking on all the newspaper’s debts, which supposedly amount to losses of around $10 million a year for both The Independent and The Independent on Sunday. He is also going to pay $15 million to buy the paper out of its already existing printing contract, which is supposed to run for another 10 years. Lebedev will be scrapping all that. He has also gained a lot of respect for that in media circles.
          
He has re-negotiated the pension packages and redundancy payments for newspaper’s staff.
Lebedev has said that he really cut a very clever deal because the terms of those agreements will no longer be so favorable.
The media mogul will be investing about $50 million into these newspapers over the next five years in an attempt to turn this loss-making enterprise around.
Lebedev has not yet explained his motivation for the deal, but this is by no means his starting point. He already owns 40 per cent of Russia’s Novaya Gazeta newspaper, for which murdered journalist Anna Politkovskaya worked. In January 2009, he bought another loss-making British newspaper, The Evening Standard, and he is currently trying to turn that around.
Of course, one of the things he could get from the acquisition is political clout. He has already been invited to a meeting with Prime Minister Gordon Brown. Apparently the British PM wanted to see the new owner of The Independent in person, and it is said that the meeting went quite well.
Evidently, Lebedev is not going to make a lot of money out of his new acquisition in the short term, but is definitely intending to get some kind of influence and position in British society that he might not get otherwise.
Newspaper consultant Richard Addis told RT that “commercially he [Lebedev] wants to make money, but politically, I’d guess, he wants influence, access, a position in British and international society that he has not quite got at the moment.”
“Staff really do not care , as long as somebody actually pays the wages and keeps the paper alive,” added Addis, “I think the staff are quite relieved to have a new owner with money.”
British public, traditionally opposing Russians coming in and buying anything in Britain, particularly newspapers, reacted not as much as one would expect. When Lebedev bought The Evening Standard there was a lot of controversy involved. But Lebedev has already almost turned the paper around and gained a lot of respect for that in newspaper circles.
The Evening Standard was and still is a loss-making enterprise, but it is expected to turn a profit in two to three years’ time. Lebedev quadrupled the newspaper’s circulation by making it a free paper.
There is a general feeling that newspapers are a failing medium, so anyone coming in and buying those titles and keeping them going and turning them around is welcomed by the industry.
The public have either never heard about the deal or do not care. Some bet on how long The Independent is going to carry on being The Independent.
The deal has not gone through yet, but it is expected to be fulfilled in the next few days.
Time will tell what The Independent is going to transform into: either it will be a free newspaper, like The Evening Standard, or it may become a glossy daily opinion magazine.

Feb 26, 2010

The Lebedevs visit Gordon Brown ahead of Independent deal | Media | guardian.co.uk

The Lebedevs visit Gordon Brown ahead of Independent deal | Media | guardian.co.uk
  • Monday 22 February 2010
Peter Kirwan today examined the details of the likely deal, which could cost INM around £20m, although closure would be more expensive.
Evgeny, left, and Alexander Lebedev at Downing Street
Evgeny, left, and Alexander Lebedev at Downing Street. Feel free to post your caption suggestions below. Photograph: Guardian/Martin Argles
Alexander Lebedev and his son Evgeny are understood to have met the prime minister, Gordon Brown, for a meet-and-greet at Downing Street today ahead of finalising their deal to buy The Independent.
The deadline for a proposed deal in which the Russian billionaire would buy the newspaper and its sister Sunday title is this Friday, having been extended a week ago.
MediaGuardian understands that Independent News & Media is keen to conclude a deal before its results are unveiled on 24 March at the latest to appease shareholders (who were formerly bondholders). In November INM secured the backing of shareholders to complete a restructuring plan. Bondholders were left with 46% of the company in a deal to repay €200m (£173m).
Peter Kirwan today examined the details of the likely deal, which could cost INM around £20m, although closure would be more expensive.
Lebedev Sr promised to put £30m over three years into the London Evening Standard when he bought it last year. Lebedev's plans for the Independent remain tightly under wraps, although he is understood to have dropped a scheme to make former Radio 4 Today editor Rod Liddle the editor of his new newspaper.
Lebedev is believed to be playing hardball in the final stages of negotiations. Independent journalists have accepted a reduced redundancy package in the hope that this will make the deal happen. There have also been negotiations over a £19m printing contract with Trinity Mirror. It is understood that pensions are not an obstacle to the deal.
But pensions are understood to not have been a sticking point. The last time INM plc reported its financials, for the period to June 2009, the company disclosed a significant €150m hole in its overall pension fund. Given the recent history of another O'Reilly-backed company, Waterford Wedgewood, this deficit has caused concern among some observers in Ireland.

However, the accounts of the UK subsidiary companies that contain the Independent's assets and cashflows make no mention of a pension deficit relating to journalists on the Independent and Independent On Sunday. Instead, the accounts of Independent News and Media only mention a pension fund tied to the Belfast Telegraph, which has been part of the company since its acquisition by INM in 1999.

Jan 28, 2010

Oligarch bidding for Independent gets huge cash injection from Putin - Times Online

Oligarch bidding for Independent gets huge cash injection from Putin - Times Online
Tony Halpin in Moscow and Alexi Mostrous 
January 28, 2010
The financial deal casts new light on the relationship between the Kremlin and Evening Standard owner Alexander Lebedev, above, usually viewed as one of its most outspoken critics



The Russian billionaire bidding to buy The Independent newspaper is poised to gain a massive cash injection from the Kremlin in a deal personally sanctioned by Vladimir Putin.
Alexander Lebedev, who bought London’s Evening Standard for £1 a year ago, is selling his stakes in the airline Aeroflot and in Russia’s largest aircraft leasing corporation back to the Government.
He told The Times in an exclusive interview that the deals would earn him more than £450 million.
Mr Lebedev said that the cash was destined for new projects in Russia and that none would be spent on his burgeoning newspaper interests in Britain. However, the financial boost casts a revealing new light on the relationship between the Kremlin and a man usually viewed as one of its most outspoken critics.

Mr Lebedev told The Times that he had agreed to sell his 26 per cent stakes in Aeroflot and in the Ilyushin Finance Corporation at a 20 per cent discount. Both will be bought by the state-owned Vnesheconombank, which is headed by Mr Putin, the Prime Minister.
The bank’s supervisory board, which is composed entirely of government ministers, will meet on February 17 to consider the sales formally but Mr Putin has already approved them. Mr Lebedev said: “The decision has been taken. My understanding is there is a written government decision on it with the word ‘agreed’.”
Mr Lebedev, 50, denied recent reports in London that he had been short of cash and laughed off suggestions that he was now being bailed out by Mr Putin at a critical moment in negotiations for The Independent, saying: “That’s pretty public. Couldn’t he give me a billion under the table?”
He said: “It doesn’t change anything in my business life, this extra cash. Anyway, I have committed it to a few other things; none of that will be ever used for newspapers because I am funding the Evening Standard out of my pocket.”
Asked whether he planned also to fund The Independent from his personal resources, he replied : “Yes, absolutely, yes.” Although he declined to discuss details of his negotiations with the current owners, Independent News and Media, he distanced himself from suggestions that he would turn the loss-making paper into a free-sheet as he had done with the Standard.
Mr Lebedev said: “If you claim that you are saving a good newspaper and that you want to reform it you don’t do that by hitting other papers.
“Let’s assume we make the Indy free, you’d affect seriously the business models of other newspapers and frankly, that’s a very important reason [not to do it].”
Mr Lebedev also played down suggestions that he had lined up Rod Liddle, the former editor of Radio 4’s Today programme, to edit the paper. He said: “I love Rod Liddle and hate him ... He’s a provocateur because he sometimes believes the opposite of what he’s saying. Whether he’d make a good editor-in-chief I don’t know.”
Insisting that he was a supporter of a free press in a democracy, he said that he would tap new readers among an estimated 5 million Britons who he described as “liberal democrats ... who really need The Independent in the way it used to be”.
It had lost a sense of purpose but had “a very good chance to be a global newspaper” campaigning on the environment and corruption issues, he said.
However, the extent of his business links with the Kremlin have raised concerns among some commentators about his own independence.
Granville Williams, a member of the national council for the Campaign for Press and Broadcasting Freedom and a specialist on media ownership, called on the Government to ensure that The Independent remained autonomous.
“These new deals with Putin raise concern that the quid pro quo would be for The Independent to draw red lines around its Russian coverage,” he said. “Although Mr Lebedev has a good track record on free speech, I’d want the Government to ask for firm guarantees that The Independent will not feel afraid of reporting Russia negatively under his ownership.”
Other media analysts, however, said that The Independent was a “natural fit” for Mr Lebedev. “It’s ideologically his true home,” said Lorna Tilbian, an analyst at Numis. “I don’t think he’s damaged the Standard and, indeed, he may have saved it. Maybe he’ll save the Indy as well.”
Mr Lebedev said that he knew President Medvedev and Mr Putin but found it easier to “treat them as one” rather than as separate political figures. He had not seen the latter for two years, after a Moscow tabloid that he owned printed a false story alleging that Mr Putin had secretly divorced his wife, Lyudmila, and married Alina Kabayeva, a former Olympic gymnast half his age.
Asked to characterise his relationship with them in light of the business deals, he said: “If they want me as an ally then I’ll be more than happy to call myself a modernisation force.”
Before now Mr Lebedev, who funds the Novaya Gazeta, the opposition newspaper where the murdered journalist Anna Politkovskaya worked, was regarded as one of the most vocal domestic critics of Mr Putin’s clampdown on political dissent.
He disclosed that his efforts to form a moderate opposition party with the former Soviet leader Mikhail Gorbachev had been blocked by the Kremlin’s shadowy chief ideologue, Vladislav Surkov, the man who coined the term “sovereign democracy” to justify Mr Putin’s growing authoritarianism as President until 2008.
An avowed Anglophile, Mr Lebedev spied for the KGB in the late 1980s at the Soviet Embassy in London, rising to lieutenant-colonel in the foreign intelligence service — the same rank as Mr Putin. He went into business after the collapse of Communism, becoming rich on complex banking deals.
The Evening Standard was losing £10 million a year when Mr Lebedev bought a 75 per cent stake from Associated Newspapers last January, becoming the first Russian owner of a British newspaper. He said that he had honoured pledges of financial support without interfering in editorial decisions, adding: “I have built walls higher than the Chinese and I am strictly observing this principle.”
There were “positive trends” financially after the Standard abolished its cover price and almost tripled the print run to 600,000 as a free newspaper. Mr Lebedev said: “The positive trend comes from additional revenues from advertising, which is linked to increased circulation.”
Sources close to Independent News and Media said yesterday that they were optimistic about concluding a deal with Mr Lebedev by February 15, when exclusive talks between the parties expire.
“Some issues have yet to be decided and the ball is not in our court,” Mr Lebedev said. One sticking point could be what to do with a long-standing printing contract with Trinity Mirror, which would cost Mr Lebedev a lot to cancel.
Empire and connections
Alexander Lebedev’s personal worth was estimated to be $3.5 billion (£2.2 billion) before the financial crisis, which he says has cost him $1 billion
In 2008, the National Reserve Corporation, Mr Lebedev’s holding company, estimated the value of its assets at $5.5 billion
In Britain he owns a 75 per cent stake in the Evening Standard and is negotiating to buy The Independent and The Independent on Sunday
In Ukraine he has stakes in Energobank and an insurance company and owns a 235-room spa, the Almond Grove open-air water park and the four-star Glory Resort. He also owns boutique hotels in France, Italy and Switzerland
In Germany he owns 48 per cent of the low-cost airline Blue Wings
In Switzerland he owns the aircraft leasing company Airstream
In Russia he owns 49 per cent of the opposition newspaper Novaya Gazeta with the former Soviet leader Mikhail Gorbachev. He is selling his 26 per cent stake in Aeroflot to the Russian government for $550 million and his 26 per cent holding in the aircraft-leasing company Ilyushin to state-owned bank Vnesheconom Bank (chairman Vladimir Putin) for $177 million. He owns a large stake in state-owned Gazprom. His National Land Company owns 45,000 hectares of farmland. He wholly owns the National Housing Corporation

Jan 27, 2010

Alexander Lebedev sells Aeroflot and air-leasing stakes for $575m | Media | guardian.co.uk

Alexander Lebedev sells Aeroflot and air-leasing stakes for $575m | Media | guardian.co.uk
London Evening Standard owner makes cash move during Independent negotiations, but talks of Russian investments
Luke Harding in Moscow | Wednesday 27 January 2010 15.54 GMT
    Alexander Lebedev
    Alexander Lebedev Photograph: Sergey Pyatakov/AFP
    The Russian businessman and London Evening Standard owner Alexander Lebedev is to sell his stake in the Russian airline Aeroflot for $400m (£247m), a cash-raising move that comes as he holds talks over the purchase of the Independent.
    Lebedev reached agreement with Aeroflot's board late on Tuesday night, he told the Guardian today. The board agreed to purchase Lebedev's 25.8% share of Aeroflot, which is held by his National Reserve Corporation. Lebedev was Aeroflot's biggest private shareholder.
    Independent News & Media confirmed last month that it was in exclusive non-binding talks with Lebedev over the sale of the Independent and Independent on Sunday.
    Talks over the future ownership of the two London-based papers are due to conclude by 15 February. The company's pension deficits and printing deals appear to be the final negotiating points.
    Speaking to the Guardian today, Lebedev dismissed any link between the sale of his Aeroflot shares and a possible imminent purchase of the Independent and the Independent on Sunday. However, he joked: "With that kind of money I could probably buy all of the newspapers [in Britain]."
    Instead, Lebedev said he had reached a "gentleman's agreement with the Russian government to invest the money in various social and development projects".
    These included low-cost housing, a building society for ordinary savers, and factories for his agricultural businesses that grow high-quality, low-cost potatoes.
    Lebedev said he had also agreed to order and buy new Russian-made aircraft for his budget airline, Red Wings. He said he would also boost the capital of his National Reserve Bank and make it more "transparent". According to the Russian financial newspaper Kommersant, he is also selling his 26% in Ilyushin Finance, an air leasing company, to the Russian state bank VEB for $175m.
    The sale of Lebedev's Aeroflot stake is likely to dispel lingering questions about his liquidity and his ability to buy the Independent, following a bruising 18 months in which Russia's oligarchs have seen their fortunes shrink dramatically. Lebedev suggested today that his assets and investments are worth around $3bn.
    Last year Lebedev was briefly unable to pay salaries for journalists working on his Novaya Gazeta newspaper after his German-based airline, Blue Wings, was temporarily grounded. The airline has recently encountered fresh financial problems and was grounded again this month by the German regulator.
    The price paid by the government for the stakes in Aeroflot and Ilyushin was at a 20% discount to their current market valuation by Ernst & Young, Lebedev said.
    He acknowledged that he had clashed in the past with Aeroflot's board of directors, and said that one government director had told him last night "with a laugh" that it would now be easier to take decisions without him.
    The website of Novaya Gazeta – known for its fearless criticism of the Kremlin – was inaccessible for much of today following a "powerful and pre-planned" attack by unknown hackers yesterday. The title, which Lebedev co-owns with Mikhail Gorbachev and its editorial team, is the latest in a series of liberal publications in Russia to come under DDOS attack.
    Staff today would not speculate on the identity of the hackers. But they said that the sheer scale of the attack – with more than a million hits a second on the server – suggested this was done by a "highly sophisticated" state agency unhappy with the paper's editorial direction.
    "We are not talking about a couple of students here," Nadezhda Prusenkova, spokeswoman for the paper, said.
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