Norway’s Schibsted ASA announced it has entered into a non-binding agreement to sell its news media operations to its largest shareholder, the Tinius Trust through investment company Blommenholm Industrier AS.

The deal is subject to a final agreement. The Board of Directors will submit the agreement to the general meeting for approval.

If finalised, the transaction will lead to Schibsted being split into two more focused companies: a media company fully owned by the Tinius Trust, and a publicly listed marketplaces company.

Schibsted’s current news media business area, the ownership stakes in Polaris Media and other media assets, would be carved out from Schibsted into a separate company (preliminarily named Schibsted Media), to be sold to and privately held by the Trust.

Schibsted’s remaining businesses would remain as a publicly listed company (preliminarily named Schibsted Marketplaces) on the Oslo Stock Exchange, consisting of the current business areas Nordic Marketplaces, which includes Delivery, and Growth & Investments.

The total transaction value in the Agreement is NOK 6.2 billion (€527.2 million), consisting of NOK 5.4 billion (€459.2 million) for Schibsted’s News Media business area, Schibsted’s minority stakes in Norsk Telegrambyrå AS, TT Nyhetsbyrån AB, and Lokalavisene AS, and the stake in Polaris valued at NOK 0.8 billion (€68.0 million) based on the volume weighted average price of Polaris the week prior to the signing of the agreement.

Looking at the next phase for the company, Schibsted’s Board and Management said it has thoroughly assessed the value creation potential of Schibsted’s core businesses, News Media and Nordic Marketplaces.

“While both businesses are well positioned for further growth, the continued verticalisation of Nordic Marketplaces is hard to combine with the vision of creating a more integrated Schibsted for the next few years, and news media’s long-term strategy requires investments that often compete with the financially more attractive opportunities related to our marketplaces,” the company stated. “Hence, the company’s board and management have concluded that both businesses have potential as stand-alone companies up and beyond what they can achieve in the current company structure.”

Schibsted’s remaining businesses will remain as a publicly listed company (preliminarily named Schibsted Marketplaces) on the Oslo Stock Exchange, consisting of the business areas Nordic Marketplaces, which includes Delivery, and Growth & Investments.

In 2019, Schibsted spun off online classifieds business Adevinta in 2019 but remains its largest shareholder. According to SIA’s 2023 Online Job Advertising report, Adevinta was the 9^th largest online job advertising firm globally with 2022 revenue of $411 million.

In September 2023, Adevinta confirmed it received a non-binding indicative proposal from a consortium led by Permira and Blackstone regarding a potential offer for all shares of the company.

Schibsted’s public commitment to reduce its ownership in Adevinta, which the company announced at its Capital Markets Day in March this year, has opened up new strategic options for Schibsted and the Trust, leading up to the Tinius Trust announcement.

The final transaction agreements are expected to include certain conditions for the completion of the transaction, including either the completion of the takeover offer for Adevinta which was announced on 21 November and a subsequent distribution by Schibsted or, should the Adevinta offer fail to complete, a distribution of shares in Adevinta by Schibsted. Further information will be provided when final transaction agreements have been entered into.

Schibsted CEO Kristin Skogen Lund said yesterday, “For the last two decades, Schibsted has pioneered the digitalisation in the news media and online classifieds industries, creating both a family of digital brands with unparalleled reach and impact in the Nordic countries, and Adevinta as a global online classifieds specialist. Today marks another historic moment for Schibsted as we announce a major strategic shift to allow our current two core businesses, News Media and Nordic Marketplaces, to better realise their full potential as separate companies. We are convinced that this move will benefit our stakeholders, and we will do our utmost to ensure a good transition and prepare for exciting futures for the two entities.”

Schibsted Deputy Chairman of the board Rune Bjerke said, “After an extensive financial and strategic analysis of the value creation potential of Schibsted’s current core businesses, News Media and Nordic Marketplaces, we have concluded that both have a potential as stand-alone companies up and beyond what they can achieve in the current company structure. Schibsted’s Board and Management have therefore worked together with the Trust to find a structural solution that unlocks that potential, while also safeguarding and developing the important societal role of Schibsted’s news media operations.”