Latest news with #ProjectGlass
Yahoo
a day ago
- Business
- Yahoo
Mirror and Express targeted for takeover that would sack a third of journalists
The Mirror and Express newspapers are being targeted for a cost-cutting takeover that would result in more than 850 journalists losing their jobs. Documents seen by The Telegraph show that veteran newspaper executive David Montgomery is reviving a swoop on Reach that would allow the 76-year-old to wield the axe in a programme of 'radical' cost-cutting at the publisher. It is also behind scores of regional titles including the Manchester Evening News and Liverpool Echo, as well as the OK! celebrity gossip brand. The £400m plan, dubbed 'Project Glass', includes a proposal to slash more than 850 journalists – more than a third of Reach's editorial workforce of 2,300 – and 100 employees in printing and production. In an unfinished draft of a presentation to investors backers, Mr Montgomery signals plans to lean more heavily on artificial intelligence instead, via 'automated content gathering'. Further cuts would be implemented in back office functions including HR and finance, while Reach's commercial headcount would be increased by 40 roles. Other plans outlined in Project Glass include 'sweating' the group's declining print newspaper titles, restructuring and ring-fencing its costly pension deficit, and embarking on an acquisition spree of other news brands. Another mooted £100m acquisition target is Yell, the digital marketing and online directory business that was spun out of the Yellow Pages in 1996. It comes less than three years after Mr Montgomery, long ago nicknamed 'Rommel' by journalists on the grounds that 'Montgomery was on our side', mounted an unsuccessful takeover bid for Reach, which owns a stable of regional titles including the Manchester Evening News and Liverpool Echo. That approach came via National World, the local newspaper group he led at the time. However, the veteran executive was ousted from National World this year after being defeated in a power struggle with Malcolm Denmark, the Irish newspaper tycoon and racehorse owner. Mr Denmark, who was National World's largest shareholder, has now taken it private. Alongside that row, Mr Montgomery mounted an unsuccessful bid for The Telegraph. He was in discussions with Todd Boehly, the chairman of Chelsea Football Club, over a complex transaction that would have used National World as a vehicle for the deal. Mr Boehly has experience as an entertainment industry publisher via his shareholding in the company behind The Hollywood Reporter and Rolling Stone. Mr Montgomery's presentation claims the backers of his Telegraph bid are ready to help bankroll a takeover of Reach with £250m of equity, alongside £150m of debt. Eldridge Industries, Mr Boehly's investment firm, was contacted for comment. Mr Montgomery may also seek to use his own cash following the £65m buyout of National World, which owns The Scotsman and The Yorkshire Post. He held a stake of 7pc, putting him in line for around £4.5m. His latest comeback bid comes at a torrid time for Reach, which has been left chasing dwindling advertising revenues amid a sluggish transition to the digital age. The company last month said it would begin trialling a paywall across its titles amid fears new Google AI tools will dent reader numbers. Reach has slashed hundreds of jobs in recent years in successive rounds of job cuts that have bruised staff morale. It has also faced criticism for its 'clickbait' stories and the deluge of adverts flooding its websites. The company's share price has declined by more than a third this year, leaving its market value at around £220m – a fraction of its £5bn peak in 2005. In the documents, Mr Montgomery criticises Reach's 'underperforming business', saying the circulation of its print newspapers – which still account for more than half of overall revenues – was dropping at a faster rate than those of rivals such as the Daily Mail. He also takes aim at Reach bosses, saying the company's 'pattern of decline has not been met with a tactical or creative response' and that acquisitions and pension top-ups worth more than £1bn over the last decade have 'all been squandered by lack of any organic plan'. Jim Mullen, the former gambling executive who oversaw more than 800 job cuts during his tenure, stepped down as chief executive of Reach earlier this year. He was replaced by Piers North, a former journalist who joined the company in 2014. Mr Montgomery claims his programme of heavy cost-cutting would save £65m per year and help increase profits by 50pc. He outlined plans to boost revenue by transforming Reach into a new digital marketing services giant – a move that he says would generate £200m in new revenues in four years. The strategy also includes a plan to expand Reach's events offering, based on the Pride of Britain brand, and generate half a million subscribers paying £5.99 a month by the end of 2027. Mr Montgomery began his career as a journalist and rose to become the editor of the News of the World before leading Mirror Group Newspapers. He established a foothold in UK regional newspapers in 2012 with the establishment of Local World, which he sold to Reach – then known as Trinity Mirror – three years later. Mr Montgomery then formed National World after snapping up titles from collapsed publisher JPI Media. Mr Montgomery and Reach were contacted for comment. Broaden your horizons with award-winning British journalism. 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Telegraph
2 days ago
- Business
- Telegraph
Mirror and Express targeted for takeover that would sack a third of journalists
The Mirror and Express newspapers are being targeted for a cost-cutting takeover that would result in more than 850 journalists losing their jobs. Documents seen by The Telegraph show that veteran newspaper executive David Montgomery is reviving a swoop on Reach that would allow the 76-year-old to wield the axe in a programme of 'radical' cost-cutting at the publisher. The £400m plan, dubbed 'Project Glass', includes a proposal to slash more than 850 journalists – more than a third of Reach's editorial workforce of 2,300 – and 100 employees in printing and production. In an unfinished draft of a presentation to investors backers, Mr Montgomery signals plans to lean more heavily on artificial intelligence instead, via 'automated content gathering'. Further cuts would be implemented in back office functions including HR and finance, while Reach's commercial headcount would be increased by 40 roles. Other plans outlined in Project Glass include 'sweating' the group's declining print newspaper titles, restructuring and ring-fencing its costly pension deficit, and embarking on an acquisition spree of other news brands. Another mooted £100m acquisition target is Yell, the digital marketing and online directory business that was formed out of the Yellow Pages in 1996. It comes less than three years after Mr Montgomery, long ago nicknamed 'Rommel' by journalists on the grounds that 'Montgomery was on our side', mounted an unsuccessful takeover bid for Reach, which owns a stable of regional titles including the Manchester Evening News and Liverpool Echo. That approach came via National World, the local newspaper group he led at the time. However, the veteran executive was ousted from National World this year after being defeated in a power struggle with Malcolm Denmark, the Irish newspaper tycoon and racehorse owner. Mr Denmark, who was National World's largest shareholder, has now taken it private. Alongside that row, Mr Montgomery mounted an unsuccessful bid for The Telegraph. He was in discussions with Todd Boehly, the chairman of Chelsea Football Club, over a complex transaction that would have used National World as a vehicle for the deal. Mr Boehly has experience as an entertainment industry publisher via his shareholding in the company behind The Hollywood Reporter and Rolling Stone. Mr Montgomery's presentation claims the backers of his Telegraph bid are ready to help bankroll a takeover of Reach with £250m of equity, alongside £150m of debt. Eldridge Industries, Mr Boehly's investment firm, was contacted for comment. Mr Montgomery may also seek to use his own cash following the £65m buyout of National World, which owns The Scotsman and The Yorkshire Post. He held a stake of 7pc, putting him in line for around £4.5m. His latest comeback bid comes at a torrid time for Reach, which has been left chasing dwindling advertising revenues amid a sluggish transition to the digital age. The company last month said it would begin trialling a paywall across its titles amid fears new Google AI tools will dent reader numbers. Reach has slashed hundreds of jobs in recent years in successive rounds of job cuts that have bruised staff morale. It has also faced criticism for its 'clickbait' stories and the deluge of adverts flooding its websites. The company's share price has declined by more than a third this year, leaving its market value at around £220m – a fraction of its £5bn peak in 2005. In the documents, Mr Montgomery criticises Reach's 'underperforming business', saying the circulation of its print newspapers – which still account for more than half of overall revenues – was dropping at a faster rate than those of rivals such as the Daily Mail. He also takes aim at Reach bosses, saying the company's 'pattern of decline has not been met with a tactical or creative response' and that acquisitions and pension top-ups worth more than £1bn over the last decade have 'all been squandered by lack of any organic plan'. Jim Mullen, the former gambling executive who oversaw more than 800 job cuts during his tenure, stepped down as chief executive of Reach earlier this year. He was replaced by Piers North, a former journalist who joined the company in 2014. Mr Montgomery claims his programme of heavy cost-cutting would save £65m per year and help increase profits by 50pc. He outlined plans to boost revenue by transforming Reach into a new digital marketing services giant – a move that he says would generate £200m in new revenues in four years. The strategy also includes a plan to expand Reach's events offering, based on the Pride of Britain brand, and generate half a million subscribers paying £5.99 a month by the end of 2027. Mr Montgomery began his career as a journalist and rose to become the editor of the News of the World before leading Mirror Group Newspapers. He established a foothold in UK regional newspapers in 2012 with the establishment of Local World, which he sold to Reach – then known as Trinity Mirror – three years later. Mr Montgomery then formed National World after snapping up titles from collapsed publisher JPI Media.
