Earlier this year, Matthew Molding claimed that the media deliberately created negative coverage of THG to drive down its stock price. Photo: THG HOLDINGS PLC /Reuters
Protein shake and cosmetics mogul and online retailer Matt Molding has made an unexpected transformation by buying the troubled London newspaper City AM.
Despite his LinkedIn tirades against the stock market and Media, THG, Mr. Molding's retail empire, rushed to save the free sheet.
THG, which owns brands like Lookfantastic and Myprotein, made a deal with BDO admins to prepackage to pay a small seven-figure fee. for the City AM website and brand.
The raid is likely to raise questions about his editorial position. City AM has been supporting the London market for nearly two decades, but Mr Molding takes a more critical view.
He said this week that the city's hostility to mixed business models means US tech giants can't succeed in London.< /p>
Mr Molding said: “Imagine the multifaceted models of large US tech companies like Amazon or Meta trading on the London Stock Exchange. It just couldn't be.”
Earlier this year, the 51-year-old entrepreneur took to LinkedIn to attack investors, analysts and the media, accusing them of deliberately creating negative coverage of THG to drive down its stock price. Mr Molding from Manchester used the hashtag #londonmafia.
Today, City AM was concerned that the newspaper could be used for a vendetta.
However, one insider of the deal said the name provided a commercial opportunity for the online store and its brand due to its rich readership. The source insisted that City AM would remain editorially independent under the ownership of THG, adding that it would take a libertarian stance in the best interests of the business.
THG already publishes its own digital magazines, including The Supplement and The Highlight. He believes his technological prowess — through the e-commerce platform Ingenuity — could expand the paper's digital operations, including through the creation of a mobile app.
Mr Molding said: “We have long considered opportunities in disruptive media -space, but have been waiting for the right time and the right opportunity to take a digital step forward in ad tech capabilities for Ingenuity.”
Mr Moulder criticized after THG's market value fell from around £6.5bn in September 2020 to £1.3bn now. He called his decision to list in London a “mistake” that “simply sucks from start to finish.”
Analysts have previously expressed concerns about management at the company, which Mr Molding has tried to address with a series of concessions. including giving up the “golden share” in the business.
The deal would have saved City AM, which has been hit by a shrinking mainstream commuter audience due to the lockdown and shift to work from home.
It is clear that THG intends to continue publishing the paper's print version. , which is distributed in London and commuter hotspots in the suburbs. Earlier this year, the headline stopped printing on Friday due to declining readership.
The retail group also agreed to meet July payroll obligations for approximately 40 Tite employees. The source declined to give job assurances, but said THG plans to expand its operations.
Freesheet City AM was attacked due to the decrease in the number of readers due to the increase in the number of working from home. Photo: Chris Batson/Alamy Stock Photo
Lawson Mancaster, co-founder and managing director of City AM, called the deal “perfect” for the newspaper.
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He added: “We both strongly believe in the power of business to make people's lives better, and we can't wait to get started with our new partners.” , was considered the only remaining option for City AM, which put itself up for sale earlier this month after failing to raise funding.
Currently, the publication has about 68,000 readers a day, up 10,000 less. from pre-pandemic numbers. The bosses have shifted their focus to digital products, with the City AM website attracting between 1.8 million and 2 million unique visitors per month.
However, in 2021 it is struggling with £1.6 million in debt and experiencing lack of funds. for investment.
City AM is further hit by the recent wave of strikes on the subways and trains, as well as the surge in newsprint prices and distribution.
City AM is 50% owned by a consortium Dutch investors, while Mr. Munkaster and chief executive Jens Thorpe each own 25%.
Mr. Thorpe, co-founder of the newspaper in 2005, is stepping down following a takeover.
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