The Telegraph Group is to spin off its online interests into a
separate company, Hollinger Telegraph New Media - but will integrate the
online sales staff into the newspaper’s ad department.
The new company, designed to extract greater shareholder value, will
employ 70 people including 15 commercial staff who will sell ads and
sponsorship and develop e-commerce.
Some of these staff currently work for Electronic Telegraph, some will
transfer from the Telegraph’s ad department and a few will be new
But all will report to Telegraph classified advertising director Mark
Payne, who is to take on the additional role of commercial director of
the new company. The Electronic Telegraph’s sales team was previously
run as a separate department.
The focus of the company is to develop Electronic Telegraph into a
market leading multi-functional site. It currently has 17 different
strands including Juiced.com for students, the planet.co.uk for travel
and a jobs site - appointments.co.uk. The immediate goal is to develop
the service in core Telegraph subject areas such as cars, money and
’We want to get more serious and make our recruitment advertising more
commercially viable,’ said Hugo Drayton who is to move from marketing
director of The Telegraph to managing director of the new company.
The Telegraph is concerned that it is still perceived by analysts as an
old fashioned print company with an ageing newspaper readership. It has
watched enviously as the likes of Dixons has spun off Freeserve and
extracted huge new value for the company.
Aside from Electronic Telegraph, its online interests include search
engine UKMax.com, a half share in Handbag.com and a 45 per cent stake in
Interactive Investor International whose key brand is iii.co.uk - the
stock market and personal finance site.
The new company will make these interests more visible and valuable
enabling a flotation at a later stage.