Never a dull moment at PCM

There is news again from PCM; but solid news this time. The Dutch newspaper and book publishing company has a new chairman of the board of directors. After all, but one of the board members have left, Mr Rob Bonnier has been appointed as the chairman, be it ad-interim.

The Foundation Democracy and Media, the major shareholder in the company, has appointed Bonnier, installing, at last, an experienced director. He finds Mr Caspar Broeksma, next to him as an ad-interim director.

Mr Bonnier has a lot of experience in the governance and management of stock quoted companies. He was the cfo of the paper company KNP BT from 1983 till 1997. Presently he is the chairman of the board of directors of DSB Bank and has some other directorships.

What is the governance and management state they find PCM in? The Foundation of Democracy and Media, after Apax’s exit, again the major shareholder of the company, needs shaping up with strong governors. The board of directors needs another two directors, as the old board has left, except for Mr Strengers. The daily management needs at least a new CEO, as now only Mr Bert Groenewegen, the financial man, is in function and is the last informed link to the company.

What do they find on their plate? Besides solving the immediate management situation, they will have to look into the merger talks that have been going on with the Foundation of Democracy and Media and the NDC/VBK, the Northern regional newspaper and national book publisher, since the beginning of the year. So far the CEO of NDC/VBK, Mr Jan Roos, has been tipped as the new chairman of the board of directors of the merger company PCM – NDC/VBK (my god what a name!).

On the other hand Mr Bonnier and Broeksma will find another problem on their plate. They will have to deal with the MNa, the Dutch monopoly watchdog. Their merger is going to be a major media concentration in Dutch newspaper world as well as in the book publishing world. MNa will have to consider the situation that after a merger there will be three major newspaper publishers: De Telegraaf, Royal Wegener and the PCM – NDC/VBK combination. De Telegraaf, a national newspaper company, wants to expand in broadcasting through its SBS link. Royal Wegener, a regional newspaper company, is being courted by the Europe oriented newspaper company MECOM. And the new combination has national and regional newspapers and will be dominant in book publishing. NMa might approve the merger, but with many condition.

So besides strengthening the governance structure of PCM, new daily management, most likely ad-interim, is needed immediately, while the new board members steer their merger plans passed the NMa. After a wild period at PCM, a new period might follow in which a solid strategic course for company can be set out in silence.

Blog Posting Number: 728

Tag: newspapers

Never a dull moment at PCM

It took a while, but now PCM knows the height of the claim by Mr Marcel Boekhoorn, the proprietor of free daily De Pers. Instead of 96 million euro, the claim has been lowered to 10 million euro. PCM disputes the claim and refuses to pay.

The claim is part of talks to collaborate in the free daily project. PCM’s CEO Ton aan de Stegge together with an Apex partner started these talks with Mr Boekhoorn. PCM would provide the printing and the distribution; Boekhoorn would provide the editorial staff. The PCM national newspapers were against the plan as they wanted to have their own free daily or protect their own baby like NRC.next. The Board of Directors/Shareholders stepped in and called off the talks.

Boekhoorn immediately let the company know that he was going to put down a claim and estimated the disaster on 96 million euro. In the meantime Apex and the Board of Directors/Shareholders were in talks for Apax stepping out. Besides the height of the transfer sum, the claim was hanging above the talks. Despite the fact that the Apax representative is said to have made promises to Boekhoorn, the Board of Directors/Shareholders took the claim, if it would come to a court case or a settlement. As the claim has been lowered from 96 million to 10 million, a settlement around 5 million euro will be most likely (and PCM has already 1 million for this claim as the CFO return his bonus of 1 million euro).

In the meantime the PCM project of a free daily DAG has started up. And the former CEO Ton aan de Stegge has been named a commissioner of the PCM love baby. No date for publication has been set yet.

De Pers has not failed one day of publication so far. As with every new paper advertisers still are hesitant. Distribution of De Pers is done at the railway stations. But now the management has also plans to have the free daily be delivered from door-to-door and eventually to convert to paid subscriptions. Eventually the distribution will consist of 30 percent through stations and buses, 30 percent in office blocks and through bookshops and 30 percent from door-to-door; the rest will handed out at gas stations. In the coming weeks De Pers will be distributed from door-to-door. The publisher Cornelius Van den Berg has 50 areas selected where De Pers will be delivered daily. The areas are mainly new developments and new towns. That is where the young families are; they are interesting for advertisers.

The publisher is very optimistic. Besides the mix of distribution channels, he wants to convert from a free daily to a paid subscription in a mid-term view. Having established one arm of the publishing empire, the publisher also announced that the company will be publishing books. Next month the first book will appear. You would think that a publisher would be able to tell the title, but he has not decided which book it will be.

By not getting involved in De Pers, PCM allows a competitor, not hindered by money, to grow.

Blog Posting Number: 723

Tags: newspapers