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GMG sells 23 newspapers in $70.6M deal

London -- Britain's Guardian Media Group said Tuesday it had sold 32 newspapers, including the Manchester Evening News, to Trinity Mirror in a deal worth $70.6 million.

London -- Britain's Guardian Media Group said Tuesday it had sold 32 newspapers, including the Manchester Evening News, to Trinity Mirror in a deal worth $70.6 million.

The media group, publishers of The Guardian and The Observer, purchased the Manchester Evening News in 1924, The Times of London Online reported.

In effect, profits from GMG's smaller, regional newspapers have been subsidizing losses at the national publications, but the tide turned last year when the smaller newspapers failed to generate a profit.

Meanwhile, the Guardian News and Media, which publishes the national newspapers, are losing about $156,000 a day, The Times said.

The sale includes $11.6 million in cash and the assumption of a $58.7 million printing contract.

Trinity Mirror Chief Executive Officer called the purchase, "a perfect fit … which extends our reach across print and online and is a further step towards our strategic goal of creating a multi-media business of real scale."

GMG CEO Carolyn McCall said the sale would "secure the future of The Guardian in perpetuity."

Copyright 2010 United Press International

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