Guardian to sell off profitable Auto Trader in bid to improve rapidly deteriorating finances

 

The Guardian has begun talks with the private equity group Apax to sell off its remaining share of the car advertising business Auto Trader in an attempt to improve its rapidly deteriorating financial position.

The newspaper’s owner, Guardian Media Group, reported a pre-tax loss of £75.6m in the year to the end of March and its newspaper and website operation Guardian News & Media made a loss of £44.2m.

On Friday, staff unions announced an “official dispute” with management over fears of compulsory redundancies. A voluntary redundancy programme aimed at cutting 100 jobs has found only 40 applicants.

News of the Auto Trader talks prompted comments that the paper was “selling off the last of the family silver”. The publisher has offloaded its regional newspapers, ending a historic connection with the Manchester Evening News, sold its radio interests and closed its television station.

Auto Trader has been an important source of revenue for GMG, although the company sold 49.7% of the business to Apax in 2007 in a deal that valued the stake at £1.3 billion. The private equity group is now seeking to activate a clause in that deal that would allow it to acquire the remainder of the business. Auto Trader’s weekly circulation has fallen by 31% in a year from 124,000 in September 2011 to 85,000 in September 2012.

But the Auto Trader business is still successful and it reported profits of £16.9m in the six months to September. The Guardian tonight reported that the talks with Apax were “tentative” and that a deal – which some accounts suggested could be worth as much as £600m – was “not thought to be likely to result in a transaction”. 

Suggested Topics
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksAn unforgettable anthology of contemporary reportage
Life and Style
tech

Board creates magnetic field to achieve lift

News
There have been various incidents of social media users inadvertently flouting the law
news

Life and Style
Stack ‘em high?: quantity doesn’t always trump quality, as Friends of the Earth can testify
techThe proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?
News
Bourgogne wine maker Laboure-Roi vice president Thibault Garin (L) offers the company's 2013 Beaujolais Nouveau wine to the guest in the wine spa at the Hakone Yunessun spa resort facilities in Hakone town, Kanagawa prefecture, some 100-kilometre west of Tokyo
i100
Sport
CSKA Moscow celebrate after equalising with a late penalty
footballCSKA Moscow 2 Manchester City 2: Premier League champions let two goal lead slip in Russia
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Media

Head of Ad Sales - UK Broadcast

competitive + bonus + benefits: Sauce Recruitment: An award-winning global mul...

Trainee Recruitment Consultant

£18000 - £30000 per annum + uncapped: SThree: Do you feel your sales role is l...

Trainee Recruitment Consultant

£20000 - £45000 per annum + uncapped: SThree: Key featuresA highly motivated ...

Vendor Services Manager (IT) - Central London

£50000 - £55000 per annum + benefits: Ashdown Group: Vendor Services Manager (...

Day In a Page

Indiana serial killer? Man arrested for murdering teenage prostitute confesses to six other murders - and police fear there could be many more

A new American serial killer?

Police fear man arrested for murder of teen prostitute could be responsible for killing spree dating back 20 years
Sweetie, the fake 10-year-old girl designed to catch online predators, claims her first scalp

Sting to trap paedophiles may not carry weight in UK courts

Computer image of ‘Sweetie’ represented entrapment, experts say
Fukushima nuclear crisis: Evacuees still stuck in cramped emergency housing three years on - and may never return home

Return to Fukushima – a land they will never call home again

Evacuees still stuck in cramped emergency housing three years on from nuclear disaster
Wildlife Photographer of the Year: Intimate image of resting lions claims top prize

Wildlife Photographer of the Year

Intimate image of resting lions claims top prize
Online petitions: Sign here to change the world

Want to change the world? Just sign here

The proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?
Ed Sheeran hits back after being labelled too boring to headline festivals

'You need me, I don’t need you'

Ed Sheeran hits back after being labelled too boring to headline festivals
How to Get Away with Murder: Shonda Rhimes reinvents the legal drama

How to Get Away with Murder

Shonda Rhimes reinvents the legal drama
A cup of tea is every worker's right

Hard to swallow

Three hospitals in Leicester have banned their staff from drinking tea and coffee in public areas. Christopher Hirst explains why he thinks that a cuppa is every worker's right
Which animals are nearly extinct?

Which animals are nearly extinct?

Conservationists in Kenya are in mourning after the death of a white northern rhino, which has left the species with a single male. These are the other species on the brink
12 best children's shoes

Perfect for leaf-kicking: 12 best children's shoes

Find footwear perfect to keep kids' feet protected this autumn
Anderlecht vs Arsenal: Gunners' ray of light Aaron Ramsey shines again

Arsenal’s ray of light ready to shine again

Aaron Ramsey’s injury record has prompted a club investigation. For now, the midfielder is just happy to be fit to face Anderlecht in the Champions League
Comment: David Moyes' show of sensitivity thrown back in his face by former Manchester United manager Sir Alex Ferguson

Moyes’ show of sensitivity thrown back in his face... by Ferguson

Manchester United legend tramples on successor who resisted criticising his inheritance
Two super-sized ships have cruised into British waters, but how big can these behemoths get?

Super-sized ships: How big can they get?

Two of the largest vessels in the world cruised into UK waters last week
British doctors on brink of 'cure' for paralysis with spinal cord treatment

British doctors on brink of cure for paralysis

Sufferers can now be offered the possibility of cure thanks to a revolutionary implant of regenerative cells
Ranked seventh in world’s best tourist cities - not London, or Edinburgh, but Salisbury

Lonely Planet’s Best in Travel 2015

UK city beats Vienna, Paris and New York to be ranked seventh in world’s best tourist destinations - but it's not London