Sources inform ''Globes'' that free newspaper “Israeli” owner Shlomo Ben-Tzvi is negotiating a cooperation agreement with Yediot Ahronot Ltd., which owns Hebrew daily “Yediot Ahronot”. Under the pending agreement, “Israeli” will become a joint brand with one of the “Yediot Ahronot” brands, and will be distributed for free. These negotiations are being conducted in parallel with “Israeli’s” negotiations with Sweden’s Metro International SA (SAX:MTRO), a global distributor of free newspapers.
For “Yediot Ahronot”, an agreement will help confront the assault by free newspapers in the past year. Sources say that the two newspapers are negotiating a cooperation agreement, not an acquisition of “Israeli”.
“Israeli’s” main asset - one of its few assets - is exclusive distribution rights at Israel Railways stations and Egged Israel Transport Cooperative Society Ltd. central bus stations.
“Yediot Ahronot” reportedly does not want to close “Israeli” down; on the contrary. If that happens, the free newspaper segment will be wide open, and the winner will likely be “Israeli” rival “Israel Today”, owned by Sheldon Adelson. Adelson is targeting the subscriber market of paid-for publications, beginning with “Yediot Ahronot”. This would give him a foothold in the public transport passenger market as well as in the free newspaper segment.
Published by Globes [online], Israel business news - www.globes.co.il - on October 30, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007