Sky News reports that ecommerce giant THG is in advanced talks with troubled London business newspaper, City AM, to acquire it through a pre-pack administration.
City AM has been trying to find a buyer in the wake of the pandemic, which saw its physical readership nosedive, and is believed to be on the verge of administration.
Sky reported that Manchester’s THG is negotiating the purchase with accountancy firm BDO, which is on standby to handle the insolvency.
The channel also quoted a source who said that THG was expected to pay “a small seven-figure sum” for City AM’s assets including its brand and website, and also meet the firm’s July payroll.
Sky added that the ability to provide clients of THG’s Ingenuity brand-building and e-commerce platform, including the likes of Coca-Cola, Kraft Heinz, Mondelez, and Nestle, greater access to a financially literate audience through City AM’s readership is a key driver for the deal.
According to Sky’s sources, THG also intends to revamp City AM’s interface by introducing an app for the publication, but will also continue printing a physical edition of the paper, which will also retain its editorial independence.
Sky added that, according to its sources, the move from THG could be announced as soon as this afternoon (July 26).
THG may have cash burning a hole in its pocket after recently selling its OnDemand division to the existing management team for £3m.
