CanWest Global Communications Corp. today announced that it has entered into an arrangement with the Mirkaei Tikshoret Group Ltd. (MTL), to become a 50% joint venture owner and operator of the "Jerusalem Post" newspaper and related properties.
Also today, the Hollinger International group announced the sale of its interests in Palestine Post Ltd., Palestine Post is the publisher of the "Jerusalem Post", the "Jerusalem Report" and related properties (also called the Jerusalem Post group) to MTL for $13.2 million, in cash. The transaction involves the sale by American Publishing Holdings Inc. of its debt and equity interests in "The Palestine Post Ltd. to Mirkaei Tikshoret. American Publishing Holdings is an indirect subsidiary of Hollinger International.
Following successful completion of the acquisition of the Jerusalem Post group by MTL, CanWest and MTL have agreed to enter into a partnership agreement under which CanWest will acquire a 50% interest in a new entity that will own all of the operating assets of the Jerusalem Post group.
CanWest stated that the partnership agreement will afford it "a substantial role" in the direction and management of the Jerusalem Post group.
CanWest president and CEO Leonard Asper said, "It is well-known that CanWest has harboured a long standing interest in the Jerusalem Post because of its well-established brand. We are delighted with this opportunity to work with MTL to unleash the considerable untapped potential of the Jerusalem Post group and to extend the reach and influence of the group's flagship newspaper and other media properties around the world, but particularly in North America where CanWest's strong printing, sales and marketing expertise can be utilized."
MTL group president and CEO Eli Azur said, "We intend to build on the influential 'Jerusalem Post' brand to bolster circulation and ad revenues in Israel, expand circulation globally, tap new international advertisers, and exploit the powerful online presence of the 'Jerusalem Post' to generate new revenues while also extending the influence of the group as the most authoritative independent source of news, information, commentary and analysis on Israel and on political, economic and social developments in the Middle East."
The acquisition by MTL is subject to customary Israeli regulatory approvals and the parties expect all of the transactions to be completed within 30 days.
The Jerusalem Post Group consists of the "Jerusalem Post", a daily English language newspaper, and several related publications and media operations. The "Jerusalem Post" was founded in 1932 by American journalist Gershon Agron. The newspaper was originally published as the "Palestine Post" and adopted its current masthead in 1953. The group also includes the "Jerusalem Post" international edition, and the weekend "Jerusalem Post", published in metropolitan New York and available for home delivery in the New York Tri-State area.
The group also includes a weekly French language edition, and the "Jerusalem Report", a widely acclaimed weekly news magazine with paid circulation in 70 countries, and with 75% of sales in the United States.
Jpost.com, the group's online news website has 14 million page views per month, more than one million unique users monthly and over 385,000 registered users. Jpost.com accounts for nearly 20% of the group's advertising revenues. The Jerusalem Post group also owns an Internet radio station.
CanWest Global Communications Corp. (CWG) is an international media company, and also Canada's largest media company. In addition to owning the Global Television Network, CanWest is Canada's largest publisher of daily newspapers, and also owns, operates and/or holds substantial interests in conventional television, out-of-home advertising, specialty cable channels, Web sites and radio networks in Canada, New Zealand, Australia and Ireland.
Mirkaei Tikshoret Ltd. is a Tel Aviv-based privately held media group whose holdings include television stations, radio stations and broadcasting rights, daily newspapers in Russian and weekly and monthly magazines in both Hebrew and Russian.
Published by Globes [online] - www.globes.co.il - on Tuesday, November 16, 2004