Swedish newspaper group Metro International announced Monday it has reached an agreement to sell its U.S. papers to a company run by an ex Metro CEO, The Associated Press reported today.
In a deal of undisclosed value, Pelle Tornberg's newly incorporated Seabay Media purchased the 590,000 strong circulation of various newspapers including free dailies in New York, Philadelphia and the Boston Metro.
"Metro USA will continue as a licensed operation to Metro International under strong leadership from one of the experts in the business. After a rough 2007, we have seen many improvements in Metro USA and losses have decreased significantly. I'm confident that Metro USA will reach profitability and steady growth," said Per Mikael Jensen, President and CEO of Metro, according to Ad Hoc News.
Metro also today announced it hopes to source 528 million kronor (US$69.1 million) in share capital in order to pay debt and retain the operations of the business.
"Due to a higher than expected downturn in the global economy and its impact on the advertising market, Metro was unable to reach a break-even operating result for 2008," the company said in a statement.