Japanese media company Nikkei acquired the FT Group from current owner Pearson for £844m (US$1.3m) in a deal announced earlier today. When finalized, the deal will bring the British business newspaper Financial Times under the control of Japan’s largest media company, adding to an already impressive but largely domestic media empire spanning radio, print, and television broadcast companies.
The acquisition comes at a tumultuous time for publishing and media companies as they struggle to understand—and monetize—the changing habits of readers in the digital age. New technologies such as the internet have further eroded the influence of traditional media, while new entrants like Facebook and Google position themselves to become the new distributors of news. Media groups that have traditionally tried to rely on print, such as the New York Times, have experimented with distribution methods, including a recent publishing arrangement with Facebook and another with Starbucks to reach a larger audience.
The acquisition marks a significant change for the Financial Times, which has been owned by British multinational publishing company Pearson PLC since 1957.
The Nikkei hopes the acquisition of the influential British newspaper will broaden its global reach, while the Financial Times hopes new ownership will allow it to act more aggressively in the digital age. Pearson Chief Executive John Fallon said “we’ve reached an inflection point in media, driven by the explosive growth of mobile and social. In this new environment, the best way to ensure the FT’s journalistic and commercial success is for it to be part of a global, digital news company.”
Recent accusations of government influence on Japanese media, however, may put a cloud over the deal.
Prime Minister Shinzo Abe has been accused of attempting to muzzle media critical of the Japanese government, creating a “mood of fear” in domestic news media. Tactics employed by the government include attempts to curry favor through meals and outings, aggressive complaints, and even outright retaliation, actions condemned as beyond anything attempted by Mr. Abe’s predecessors. The current climate has even influenced publishers to toe the official line with regards to highly contentious issues, ranging from the government’s handling of the Fukushima crisis, its revision of the pacifist Japanese constitution, and its view on military actions and war crimes during World War Two.
Government pressure has lead to some dramatic flare-ups between journalists and publishers, including when a journalist struck back at the government in an angry announcement on live TV. Domestic media companies have also taken fire for self-censorship, reflecting what some experts believe is an anemic press culture hesitant to act as a watchdog.
Japan also suffers from a corporate culture slow to admit to mistakes and slower to change, as well as an infamously cozy relationship between government, giving rise to the nickname “Japan Inc.” How well this will sit with a paper renowned for its heretofore "hands-off" ownership remains to be seen.
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Updated 24 July 2015
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