Newspapers and Technology March 2000
Thomson shifts to technology
Publisher unloading all newspapers
except Globe and Mail
By Kevin Juhasz
Editor
Thomson Publishing announced Feb. 15 plans to sell all of its newspaper assets in a move to focus its business on electronic services.
Of the company's 55 daily and 75 non-daily newspapers, only the Toronto-based Globe and Mail will remain with Thomson.
"We recently completed a strategic review of our business," said Richard Harrington, president and chief executive officer of Thomson, in a statement. "While Thomson Newspapers is an outstanding, profitable business with a superb management and strong brands, it is outside our strategy of being a global provider of information and solutions for business professionals."
Thomson Newspapers produced about $810 million in revenue in 1999, excluding the Globe and Mail.
Excluding its newspaper business, 50 percent of Thomson's $6 billion in revenue in 1999 was from electronic services -- $330 million of that was from Internet-based services.
Thomson would like to raise the amount of revenue from electronic services to 80 percent over the next five years.
Thomson hired investment banker Goldman Sachs to advise it during the sale, which is expected to be completed in the second half of the year.
Thomson will use the income to help pay debt and add borrowing capacity.
Other services the company provides are software-based law, tax accounting and human resources, financial information learning and scientific services.