>> It's the biggest shake-up in Britain's cutthroat newspaper industry in decades. Daily Mirror publisher Trinity Mirror has scooped up rival titles the Daily Express, Daily Star, and OK magazine for 127 million pounds, about $177 million. The takeover unites tabloids from opposite ends of the political spectrum and with conflicting views on Brexit.
While many big owners have sold out of the business in recent years, Reuters' Kate Holton says Trinity has been one of the groups who've actually bought more newspapers.>> And what it sees is that it can be a large newspaper owner, where it takes out lots of back office costs.
Where it has one large entity for advertisers, where it can put all its money together and invest in its Internet offering. It does believe that there is a viable business model out there. It just thinks that you have to be a very strong player to be able to succeed in this market.
>> Both newspapers are profitable, but circulation has been falling for a long time. The deal comes at a time when media companies across the spectrum are looking at how they can expand into new markets. Media tycoon Rupert Murdoch's Fox is working towards a $15 billion takeover of Sky, which could have wider repercussions for his proposed deal with Disney.
And the Trinity Mirror shakeup has been welcomed by investors. Its shares jumped 12% on the announcement.>> Because there was such pressures within the industry, there is a lot of change going on. There are new sites being developed, there are new ways of people trying to monetize content.
>> But layoffs do look likely, especially as Trinity Mirror says it plans to save 20 million pounds in annual costs by 2020.