Gota Media and Bonnier News Local enter into a letter of intent regarding partnership and cross-ownership

To secure long-term local newspaper publishing, Gota Media and Bonnier News Local intend to enter into a strategic partnership. The aim is that together, the two organisations will accelerate the digital transformation and create synergies that enable investments in content and quality local journalism. 

Gota Media is a prominent player in Swedish local newspaper journalism and is the owner of high-quality brands and strong local newspapers such as Borås Tidning, Barometern, Smålandsposten, Blekinge Läns Tidning and Kristianstadsbladet. The company is owned by the two foundations, the Barometern Foundation in Kalmar and the Tore G Wärenstam Foundation in Borås.

Bonnier News Local, jointly owned by Bonnier News and Norwegian Amedia, is a leading local newspaper group with operations in Southern and Central Sweden. The Group is the result of an earlier merger between the former Mittmedia, Hall Media and HD-Sydsvenskan. 

The ownership in HD-Sydsvenskan is divided between Bonnier News Local and JP/Politikens Hus.

Gota Media and Bonnier News Local now intend to form a strategic partnership that will be formalised through cross-ownership. Through this, Gota Media becomes a 20 per cent owner in Bonnier News Local in return for Bonnier News Local receiving 30 per cent of Gota Media.

The aim of the partnership is to secure the long-term future of local journalism in the publishing areas of both the groups. This will be done by achieving a faster and even more sustainable digital transformation, and together strengthening the two companies’ position in the Swedish advertising market. The collaboration will also create cost synergies that facilitate journalistic initiatives and allow both companies to continue to play an important role in keeping local democracy alive.

“We are very much looking forward to a profound collaboration with Bonnier and Amedia. The partnership gives us opportunities for joint investments in ecosystems, platforms and innovative skills that are important for the continued development of both the reader business and the advertising business for our newspapers”, says Boine Gepertz, CEO Gota Media.

“This collaboration feels tremendously good! Gota Media has quality brands and is an important player in Swedish local journalism, and Bonnier News Local has a large digital presence and has demonstrated that it is possible to reverse the negative trend in local media’s reader revenue. Together, we also share the fundamental belief in the value of free speech. I am convinced that our partnership will, to the greatest extent, benefit both companies”, says Anders Eriksson, CEO of Bonnier News.