Shares in the Daily Mail on the London Stock Exchange have slipped in London today (November 21st) after the newspaper announced it is selling its regional newspaper arm to a new company.
Led by tabloid veteran David Montgomery of the Mirror Group, Local World is purchasing Northcliffe Media for £52.5 million, which will also combine regional assets of the Iliffe newspaper group.
Local World has revealed the deals will give it control of 107 newspapers and 20 websites and said the business it is acquiring will bring six million readers and seven million news site users.
Chief executive of the new organisation Steve Auckland said: "Local World will be a comprehensive local content provider, offering the best and most trusted source of news, views and advertising in print, online and mobile."
At 12:10 GMT, shares in Daily Mail and General Trust on the London Stock Exchange retreated by 0.4 per cent to 470.75p.
Find out more about CFD trading strategies and the FTSE 100 at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.