Schibsted to Sell Its News Media Business for over €500M

Norwegian media and marketplace operator Schibsted is set to divest itself entirely of its news media business and focus solely on marketplaces.

Shares in Schibsted rose by as much as 16% on Monday after the media group announced plans to sell off its non-marketplace businesses with current shareholder the Tinius Trust (27% stake) set to take on the assets.

The deal is worth NOK6.2 billion ($567 million) and is expected to conclude in H1 2024.

Schibsted's Nordic Marketplaces division (assets below) will remain publicly listed on the Oslo stock exchange, with analysts arguing that a separation will make it easier for Schibsted to raise funds in the future.

Schibsted Nordic Classifieds Assets

The firm recorded revenues of $350M in its Q3 2023 results with a solid if unspectacular 1% YoY revenue growth. Schibsted's News Media business accounted for 44% of revenue while its Nordic Marketplaces made up 33% (the rest was from its investment arm and its delivery businesses).

Schibsted's News Media division includes assets in Norway and Sweden including VG, Aftenposten, Aftonbladet, Omni and Svenska Dagbladet. The segment has been largely stagnant in terms of revenue for several years with a marginal increase in EBITDA margin (from 5% to 9%) recorded in the company's latest earnings report.

The spinoff comes after Schibsted completed the 2019 spinoff of its non-Nordic marketplace businesses to form Adevinta in 2019. Schibsted remains a major shareholder in Adevinta and, along with the other major shareholder eBay, is backing the proposed $14 billion take-private bid tabled by a U.S. private equity consortium.