There is none so controversial as a tabloid newspaper that is notorious for publishing sensationalist stories and allowing readers to comment on them.
That is exactly what the Daily Mail, a mainstream, gossip-orientated daily journal has done for the past 125 years, since it was established, rather ironically, by British nobleman Viscount Alfred Harmsworth of Northcliffe and his brother, Harold Harmsworth, 1st Viscount of Rothermere.
An amusing take on daily news aimed at the working people of Britain which was founded by a member of the elite is the epitome of British class system-related irony, and has been a massively popular read ever since its inception.
The company is now being looked at by a family who want to buy one of its divisions, RMS, which is a leading catastrophe risk modelling companies serving the insurance and reinsurance industry for £810 million and potentially look to de-list that entity from the London Stock Exchange and operate it as a privately held business.
The holdings company which operates as a publicly listed entity is called The Daily Mail and General Trust (DMGT) and is listed on the London Stock Exchange, with a market cap of £2.3 billion and operates information, events and media divisions which collectively operate internationally.
This morning, The Daily Mail and General Trust company issued a commercial notice stating that the prominent Rothermere family are looking to buy one of its business divisions, which has resulted in the share price of DMGT rising substantially.
DMGT has recently been involved in a few successful merger and acquisition deals, involving the sale of its insurance risk division and its 20% investment in second-hand car marketplace Cazoo which is about to go public in a forthcoming IPO.
DMGT said this morning in announcing a possible reorganisation and acquisition of all of its shares by its main holder, the Lord Rothermere controlled Rothermere Continuation Limited (RCL), that “Following a number of enquiries from third parties, it is in discussions in relation to the sale of its Insurance Risk division (RMS)”
Lord Rothermere's takeover offer is contingent on both a sale of the insurance business and the successful listing of Cazoo and both entities must also agree on liabilities relating to the company’s three pension schemes.
Importantly, DMGT has stated in writing that it will pay a special dividend if both deals go ahead.
As a result, this morning the share price rocketed by 4.62% which equates to 50 points am di snow standing at an astonishing £1090 per share, making this a five year high.
In fact, DMGT is on a roll, as its share price has risen by 118 points over the past 5 days, and 352 points over the past five years.
Gossip may be one revenue earner, but Daily Mail's interests in far more considered and measured data and information companies has paid off.