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The Proposed Acquisition of Certain Business Assets and Goodwill of River Media by Formpress Publishing Ltd Phase One Examination Report

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The Proposed Acquisition of Certain Business Assets and Goodwill of River Media by Formpress Publishing Ltd Phase One Examination Report The Proposed Acquisition of certain business assets and goodwill of River Media by Formpress Publishing Ltd Phase One Examination Report 1 March 2019 Prepared by the Department of Communications, Climate Action and Environment www.dccae.gov.ie Table of Contents Table of Contents ...................................................................................................... i 1. Background ...................................................................... 1 The Purchaser: ............................................................................................. 1 The Target: ................................................................................................... 1 Media Sector ............................................................................................................ 2 The Purchaser: ............................................................................................. 3 The Target: ................................................................................................... 5 2. Application of the Relevant Criteria & s. 28D (2) of the Competition Act ......................................................................... 7 Significant Interests ................................................................................................. 7 The Purchaser: ............................................................................................. 8 The Target: ................................................................................................... 9 Impact: ......................................................................................................... 9 Relevant Media Assets ............................................................................................ 11 The Purchaser: ............................................................................................ 11 The Target: ................................................................................................. 12 Impact: ....................................................................................................... 13 Ownership and Control .......................................................................................... 14 Relevant Media Assets: .............................................................................. 14 Regulatory Oversight: ................................................................................ 14 Proposed Changes: ..................................................................................... 15 Impact: ....................................................................................................... 15 Market Share .......................................................................................................... 15 The Purchaser: ........................................................................................... 16 The Target: ................................................................................................. 22 Brand & News Reach: ................................................................................ 22 Media Merger – Parties; Examination - i - The Views of the Parties ............................................................................. 23 Impact: ....................................................................................................... 23 Governance and Editorial Management ................................................................ 24 Compliance and Ethics .............................................................................. 25 Editorial Ethos ........................................................................................... 25 Impact ........................................................................................................ 25 Content – Diversity ................................................................................................ 26 The Purchaser ............................................................................................ 26 The Target .................................................................................................. 26 Impact ........................................................................................................ 26 Financial ................................................................................................................ 27 The Purchaser: ........................................................................................... 27 The Target: ................................................................................................. 27 The Views of the Parties ............................................................................. 27 Impact: ....................................................................................................... 28 Impact on the Irish Language ................................................................................ 28 Impact: ....................................................................................................... 28 The scale and reach of RTÉ and TG4 ..................................................................... 28 Impact: ....................................................................................................... 29 The Views of the CCPC/European Commission ....................................................30 The Views of the Undertakings Involved ...............................................................30 3. Summary of the Application of the Relevant Criteria & s. 28D (2) of the Competition Act ................................................. 31 4. Conclusion ...................................................................... 35 Media Merger – Parties; Examination - ii - 1. Background 1.1 The Proposed Transaction involves the acquisition of certain business assets and goodwill1 of River Media (the Target Group) by Form Press Publishing Ltd (Iconic) (the Purchaser) (together the Parties)(the Proposed Transaction)2. 1.2 The Parties have provided a document titled Heads of Terms. This is a non-binding document intended to be the foundation for a legal document3. 1.3 The Parties are making a joint notification4. 1.4 The geographical regions within the State where areas of overlap occur between River Media and Iconic are South Donegal, Letterkenny and Kildare5. The Purchaser: 1.5 The Purchaser is a wholly owned subsidiary of Mediaforce Limited6. 1.6 The Purchaser publishes regional newspapers and their online versions, namely The Donegal Democrat, The Leinster Leader, The Kilkenny People, The Limerick Leader, The Longford Leader, The Tipperary Star, The Leinster Express, The Leitrim Observer, The Nationalist, The Dundalk Democrat, The Donegal People’s Press, The Limerick Chronicle, The Letterkenny People, and The Offaly Express7. 1.1 In the State, the Purchaser is active in the Publishing and Internet Media sectors through the publication of newspapers and the provision of online news offerings. The Target: 1 Goodwill is described in the notification form as “the intrinsic value of each title is derived from the enduring publishing business in each of their respective areas and communities for considerable periods of time. This value is derived from the audience who read the title and advertisers who support the title and the individuals who are transferred to Iconic who bring invaluable knowledge”. 2 M_2019_1 Iconic / River Media Merger Notification Form p. 2 3 Appendix 1 of the CCPC notification – Signed Heads of Terms 4 M_2019_1 Iconic / River Media Merger Notification Form p. 4 5 Ibid p. 8 6 Ibid p. 6 7 Ibid p. 2 Media Merger – Parties; Examination - 1 - 1.2 The Target Group is a group of newspaper titles, online news offerings and goodwill (as defined in the notification) which is owned by River Media. River Media is a wholly owned subsidiary of Q Local Media Limited, a company which is limited by shares incorporated in Northern Ireland8. 1.3 The Target Group consists of the following regional newspapers and online news offerings: The Letterkenny Post, The Finn Valley Post, The Kildare Post, The Inish Times, The Donegal Post, Derry News (Monday edition), Derry News (Thursday edition), County Derry Post, Derry Now, Donegal Now, and Kildare Now9. 1.4 In the State, the Target Group is active in the Publishing and Internet Media sectors through the publication of newspapers and the provision of online news offerings. Media Sector 1.5 Media Mergers, as defined in s. 28A of the Competition Act 2002 (as amended) (the Competition Act), refers to those undertakings which “carry on a media business” in the State. A “media business” is defined in the Competition Act as follows: (a) ‘media business’ means the business (whether all or part of an undertaking’s business) of— (b) the publication of newspapers or periodicals consisting substantially of news and comment on current affairs, including the publication of such newspapers or periodicals on the internet, (c) transmitting, re-transmitting or relaying a broadcasting service, (d) providing any programme material consisting substantially of news and comment on current affairs to a broadcasting service, or (e) making available on an electronic communications network any written, audiovisual or photographic material, consisting substantially of news and comment on current affairs, that is under 8 M_2019_1 Iconic / River Media Merger Notification Form p. 2 9 Ibid p. 3 Media Merger – Parties; Examination - 2 - the editorial control of the undertaking making available such material; 1.6 The current
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