Turkish media speculates about Doğan newspaper sale

Several newspapers in the Turkish media yesterday reported that Aydın Doğan, head of media conglomerate Doğan Holding, may be selling five of his newspapers and could choose to reduce his business presence in the print media by divesting himself of all his newspapers except for Hürriyet, but a statement from Doğan Holding later yesterday morning denied any truth to the rumors.

Aydın Doğan

Several newspapers and media Web sites claimed that Doğan is planning to sell all of its newspapers and in fact has already sold the Milliyet daily to its German partner Axel Springer, the owner of Germany’s high-circulation Bild newspaper. Akşam reported that Milliyet’s sale would be followed by the sale of remaining Doğan dailies Vatan, Posta, Radikal and Fanatik. The daily wrote that the only print media organ Doğan would keep would be Hürriyet, its flagship, and that it would retain all its TV stations and companies,, which include Kanal D, Star TV, CNNTÜRK and D-Smart.

However, Doğan Holding issued a statement Tuesday morning stating that news stories suggesting that some of the newspapers which belong to the group or are co-owned with partners have been sold bore no relation to the truth.

Also yesterday the İstanbul Stock Exchange (IMKB) temporarily halted all trading on Doğan Holding, Doğan Yayın Holding, Hürriyet Gazetecilik and Doğan Gazetecilik stocks. A statement from the bourse said three of the companies would be reopened to transactions starting at 10:30 Wednesday morning. Transactions were suspended due to speculation over the sale of Doğan newspapers, it said, but added that trading on Doğan Yayın Holding would be halted until the results of a scheduled court hearing in a lawsuit filed by Doğan against a $3.8 billion fine over allegations of tax fraud are made public. However, the suspension was lifted at noon, with the İMKB announcing that the Doğan hearing had been postponed until a later date, which is yet to be set.

Observers noted that on Oct. 13 the Radio and Television Supreme Council (RTÜK) had warned Doğan that Axel Springer’s shares in the Doğan TV station exceeded the 25 percent limit set in Turkish law for foreign company media ownership. RTÜK had given three months to correct the situation. Some reports yesterday suggested that the newspapers’ transfer would be part of a non-financial exchange between Axel Springer and Doğan to reduce the German company’s shares in Doğan TV in exchange for shares of Doğan Holding to fulfill RTÜK’s requirement.

11.11.2009

TODAY’S ZAMAN İSTANBUL