As newspapers in North America and Europe suffer dwindling advertising revenue and other financial woes, repaying debts could be in jeopardy, but money from Asian and Middle East investors may be able to help out, according to Followthemedia's Philip Stone.

Just as some U.S. and European banks have turned to Asia and the Middle East for cash to ease the pain of the U.S. sub-prime credit problem, the UK-based Johnston Press has also made a similar deal, Stone reported Thursday.

Johnston Press, which publishes more than 300 regional and local titles in the United Kingdom, will accept £42.7 million for 20 percent of the company from Usaha Targas investment company, owned by Ananada Krisnan, reported to be the second richest billionaire in Malaysia, and the 116th richest man in the world, according to Forbes magazine. Usaha Targas deals specifically with media and communication ventures, according to Stone.

The UK publishing group is also raising an additional £169.6 million “via a one-for-one rights issue discounted 61% from the share price the day before the announcement,” Stone stated. “Obviously, the Malaysian investment is not on the same scale as the billions being pumped into U.S. and European banks by Middle East and Asian Funds – some private money, others from state-owned sovereign funds – but the concept is pretty much the same. If you need money to boost the balance sheet these days it's in Asia and the Middle East where the 'readies' are abundantly available.”

And for investors from the Middle East and Asia, it's “just pocket money,” Stone states, pointing out that although investors could worry about downturns in print, the selling point is on the booming digital side.

For Stone's complete analysis, visit followthemedia.com.