THG in Talks to Acquire City AM, London-based Business Newspaper Facing Administration

The Manchester-based company could announce the purchase as soon as Wednesday afternoon, according to City sources.

THG is expected to pay "a small seven-figure sum" for City AM's assets, including its brand and website, and meet July's payroll obligations for the roughly 40 staff who work there.

The emergence of THG as the likely buyer of the freesheet newspaper that has become a fixture on London's streets over the last 18 years will surprise the City.

However, the acquisition of City AM would provide THG with a series of commercial opportunities, while at the same time underlining the shifting boundaries of traditional media ownership.

The deal is expected to deepen Ingenuity's relationships with major media buying agencies such as GroupM, as well as content syndication relationships with companies such as Alphabet's Google arm and the financial data and media powerhouse Bloomberg.

THG is already understood to boast a monthly readership of 600,000 people across its nutrition and beauty digital magazine titles, which include The Supplement and The Highlight.

These figures dwarf the circulation of many long-standing magazine titles, such as GQ, one person close to THG pointed out.

The acquisition of City AM would also provide THG with the opportunity to give clients of its Ingenuity digital brand-building and e-commerce platform, which include consumer goods giants Coca-Cola, Kraft Heinz, Mondelez, and Nestle, greater access to a financially literate audience in the form of City AM's readership.

THG's board contains other media ownership experience, including Lord Allen, the former ITV chief executive, who is the company's chairman.

The company plans to continue printing City AM, which is distributed at hundreds of commuter hubs across London and the home counties.

THG also plans to overhaul City AM's technology interface with readers by launching an app for the title.

The acquisition is likely to be met with questions about whether the newspaper title risks being turned into City AM, a London-based financial newspaper, has announced that it will be put up for sale after a pre-pack sale was deemed the only viable option to secure the company's future.

In a pre-pack sale, administrators are appointed to a company before its assets are immediately sold.

This news comes as The Daily Telegraph, its Sunday sister, and The Spectator are also set to be put up for sale by receivers who were called in by Lloyds Banking Group.

City AM has a daily print run of 70,000 and an audited circulation of just over 67,000.

The newspaper is jointly owned by a group of Dutch investors and Lawson Muncaster, the managing director and CEO, who each hold a 25% stake.

The remaining 50% is owned by the investors.

The decision to put the newspaper up for sale was announced by Lawson Muncaster at the start of this month.

Muncaster said that with London's recovery from the pandemic, it is time for City AM to consider its next chapter.

The newspaper is well positioned to expand into new areas and develop new revenue streams, as it has up to two million monthly unique visitors to its website.

The newspaper ceased publishing its Friday edition in January, as a result of shifting commuter habits after the pandemic.

The appointment of insolvency practitioners and the immediate sale will come as The Daily Telegraph, its Sunday sister, and The Spectator prepare to be put up for sale by receivers who were called in by Lloyds Banking Group.

The news of City AM's sale comes as no surprise, as it is not uncommon for newspapers to be sold or closed down due to financial struggles.

The Daily Telegraph, for example, has faced declining sales and financial losses in recent years.

The sale of City AM will have a significant impact on the journalism industry in London, as the newspaper is a major player in the city's financial scene.

It is unclear at this time what the future holds for the newspaper and its employees.

In a statement, THG, the company that owns City AM, declined to comment on the sale.

BDO, the insolvency practitioners appointed to City AM, has also been contacted for comment.