Fairfax has announced announced today their exit from the NZ TradeMe online classifieds business.
This is a a disappointing yet somewhat understandable move from Fairfax. Disappointing in that it makes sense for them to own a strong classifieds business. Understandable because they need the balance sheet benefits to flow from the sale.
If I was a Fairfax shareholder I’d have preferred them to retain interest in the TradeMe business and to use this as a beachhead for digital expansion. Digtal is the future for Fairfax – they have said as much.
Newspaper publishers need to work hard at growing non print revenue – as do newsagents. If I had a strong online business I would not be selling at this time.
The sale is another move in a very busy year of moves by Australian newspaper publishers throughout all their operations.
Selling your most profitable asset to pay off debt, no wonder they are in trouble with decisions like that!