THE Financial Times yesterday took another step away from its reliance on advertising, as it snapped up Medley Global Advisors.
The provider of macroeconomic intelligence to hedge funds and banks will become part of the FT’s paid for subscription service. The FT is stepping up its investments in premium services to reduce its reliance on advertising, which is emerging from a severe downturn but still in decline.
The company predicts that its content revenues will overtake print advertising in 2010 and total advertising by 2012.
This is the latest in a string of acquisitions the FT hopes will provide the foundation of a sustainable business model.
In 2008 FT owner Pearson bought Money-Media, an online news and commentary service for fund managers. It also publishes FTfm, a weekly review of the fund-management industry, as well as owning the FT newspaper and a 50 per cent stake in The Economist.
Privately owned Medley Global Advisors, founded by former George Soros political strategist Richard Medley in 1997, counts top hedge funds and asset managers as well as investment banks among its customers.
It had estimated gross assets of £4.6m at the end of 2009 and employs 45 staff around the world. Its clients are concentrated in the Americas and Europe.
KIT VAN TULLEKEN
KIT van Tulleken from Quayle Munro advised Pearson on the acquisition. She founded The van Tulleken Company, a corporate advisory firm handling mergers and acquisitions in the publishing, information and technology sectors in 1995.
The company focused on international transactions in the UK, Europe and North America.
Van Tulleken has worked with leading global media companies including von Holtzbrinck Group, Wolters Kluwer,
Nielsen, Hearst, Pearson, Reed Elsevier, Dolan Media, and Hachette. In 2008 The van Tulleken Company was acquired by Quayle Munro. She is based in its London office.
Prior to founding van Tulleken, she was managing director of The Pofcher Company, a media investment bank.
Van Tulleken has over 30 years experience in publishing and related media industries including magazines, broadcasting, books and newspapers. She is a graduate of McGill University in Montreal and a Governor of King's College School in London.