What the THG purchase of City AM means for the British media industry

The recent purchase of City AM by retail giant-turned-media mogul; The Hut Group (THG) has been met with mixed reviews across the British media industry in recent days. What looked like the end of a legacy publication, known for its long tenure as the archetypal morning paper for London’s financial district, has now become the start of a new era for the British media title.

The survival of City AM is an important moment for journalism. In the last decade, we have seen stalwarts of British journalism come under the ownership of umbrella brands that go some way to dictating their agenda. But there is now a new player operating under a self-imposed strict set of rules.

But what does it mean? What are the details and how does this impact the way comms people do their job?

The facts

In July, City AM declared they were up for sale. With a dedicated readership of near three million people across print and online, and boasting a team of near 40 dedicated journalists, City AM has a longstanding reputation as one of the UK’s most influential, independent news outlets for those working in business and finance.

After months of financial and operational difficulties, the outlet failed to find a buyer, giving THG the opportunity to purchase through a prepack administration. A somewhat surprise bidder, THG owner, Matt Moulding has created a retail empire based on a series of strategic purchases across the nutrition and beauty sectors.

Whilst the purchase of City AM is a left-field purchase for Moulding and THG, it is not their first foray into the media. THG has an existing arm of the business dedicated to creating content for its own and third-party brands to use as part of their editorial, marketing and comms work. Similarly, THG also owns two dedicated online magazines, The Highlight and The Supplement, with a combined readership of nearly 600,000 users.

So, what does this mean for comms?

In short, this is a positive update for comms professionals. As we have seen with major news brands such as News of the World in recent years, keeping City AM in the hands of British business and securing the long-term future of a British establishment is a positive result for all involved.

Based on the content of a LinkedIn post by founder, Moulding, City AM is set to retain its “full editorial independence” [sic]. This is good news for comms personnel operating within the financial services, business, and leadership spaces, wherein City AM is still held in very high regard.

Moulding has previously had strong opinions on the media, especially coverage touching on corporate governance and strategy. Whilst a portion of the British media landscape will have similar strategic queries upon Moulding’s purchase of a national newspaper, should their promises of an independent publication ring true, this is a win for those in the PR and marketing industry.

This purchase also represents an opportunity for comms. City AM’s representation as a free broadsheet has seen a sizeable portion of its pages dedicated to brands and paid advertising. Such is THG and Moulding’s position as retail leaders and online giants, City AM will now likely become an additional home of top tier advertising and paid marketing opportunities.

Establishing and retaining contacts within City AM’s well-regarded team will be crucial for PRs looking to gauge the status quo, and comms people looking to understand the benefits of a slightly adapted but equally influential online and print resource.

And what does this mean for brands?

In essence, not too much. Brands should see an editorial outlet under the ownership of a fledgling, established British brand as a positive. Working with their PR and comms teams remains crucial, and whilst there may be staff turnover that comes with the takeover, the core team of City AM will likely stay the same. As such, PR and marketing teams should not be so drastically affected by the changes.

Brands now have an opportunity to work with their communications partners to better understand what the advertorial agenda of City AM under THG ownership looks like and how that ties into their own communications’ ambitions.

Equally, the responsibility now lies with City AM’s in-house teams to position themselves as a resource for the online and print, whether that be editorial or advertorial.

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