Online reports – Economy – BaZ: “Moritz Suter is not letting go of the paper”

© Photos by Ruedi Suter and Peter Knechtli, OnlineReports.ch

“Written in the book of fate”: New BaZ owner Moritz Suter*

His commitment to the “Basler Zeitung” arose from the Basler civic duty / doubts as to whether it was a sole decision

From Peter Knechtli

Zurich is amazed: What the large publishing houses NZZ and Tamedia failed to achieve, the Basel-based private citizen and former airline entrepreneur Moritz Suter managed to do overnight. In an emotional act of persuasion, he bought the publishing group of the “Basler Zeitung” – really on his own or with the help of silent partners?

The Basel graphic artist, who is always interested in public affairs and is just over sixty, dreamed about the BaZ last night: Was it all just a ghost? “Overnight we have a Basel publisher again and everything is as it was before – only Markus Somm is still there.” After just nine months, Tito Tettamanti and Martin Wagner, who had just spoken of a long-term commitment, ended their guest appearance at the “Basler Zeitung”. He is now “just an ordinary subscriber,” Wagner said modestly at the media conference yesterday Wednesday.

But other Basel residents also rubbed their eyes and “didn't” reconcile Suter's emergency purchase without due diligence and his not-so-limitless financial power. Even in Zurich, which is not well-disposed towards Tettamanti, it seems inexplicable how a 67-year-old private citizen could manage to acquire a faltering but still significant regional media empire overnight. The NZZ spoke of a “grey veil” that also hung over the new ownership structure. Speculation immediately arose: Did Suter only buy the holding company, while the rest of the structure remained unchanged? What is the deal in the deal? Who is behind it?

“Not towards NZZ”

Nobody except Moritz Suter himself. This is at least what close confidants of the aviation pioneer say – while others have doubts and consider “silent partners” to be entirely conceivable and legitimate. They are firmly convinced that the trained pilot aimed for the publisher's runway at the end of his long professional career all on his own, perhaps in consultation with his family. When the brand-new BaZ owner, who is familiar with the whole globe, exuded local patriotism in front of the media with shining eyes and witty remarks (“You're from Eastern Switzerland, right?”) and clearly enjoyed the appearance, then he meant it.

“Moritz Suter is a Basel native and has an infinite connection with the city,” continued the source, who is firmly convinced that Suter “will not let the paper slip from his hands.” He will now certainly “study entrepreneurial combinations” and “bring order to the mammoth operation.” At the same time, the new sole owner will also have a broader base of personnel and “distribute responsibility across different shoulders.” But: “It's certainly not going in the direction of the NZZ.” Suter is more likely to strive for a “Basel solution.”

Suter acted “out of civic duty”

According to Rolf Soiron, himself chairman of the board of directors of multinational companies (“Holcim”, “Lonza”) and former president of the University of Basel, Suter’s spontaneous takeover of the “Basler Zeitung” was not only “a matter of the heart, but a civic duty”. Although he will make sure that he “gets out of his commitment without loss”, he is by no means the investor who still has the ambition to earn a three-digit million sum (“he already has that”).

Soiron believes that it is wrong to conclude from his showmanship – he has even had elephants perform at Crossair staff parties – that his involvement with BaZ is an attempt to remind the public of himself once again: “As the person in charge of the 'Basler Zeitung', he is perhaps closer to what is written in his book of fate, as many believe. Although he is jovial in his demeanor, he “plays out his appeal so well that he can be trusted”. Suter has “always said what he thought and did”. He is therefore truthful: “You can take him at his word.” This also applies to his statement that he does not interfere in the editorial affairs of the newspaper.

Last year 20 million loss

The mellowness of age that the new Basel media captain exudes – for example when he throws a small sum to a street musician on the Münsterplatz (picture) – is in contrast to the tough stance he used to take on opposing flight personnel. But today he has other problems: he has to lead the “Basler Zeitung” group, which is in debt to the tune of 100 million Swiss francs, back into the profit zone. Last year, the Basel media house posted a loss of around 20 million Swiss francs, 12 million from operating business and 7 million Swiss francs from one-off social costs due to the enormous reduction in staff. At least: The current year looks promising. It looks significantly better – depending on whether special income is included in the balance sheet or not. Wagner has already spoken of a black zero, Suter claims to have identified a small seven-figure loss.

The printing sector is particularly hard hit. It has cross-subsidized the Basler Zeitung for decades, but from next year it will lose an annual added value of 8 million francs due to the loss of the Coop-Zeitung printing contract alone. Birkhäuser+GBC incurred a further 2 million. The other loss-making printing contracts such as 20 Minuten Basel and the reduction of the Baslerstab editions, which are now making operating profits again, are also contributing to the deep red figures in the printing sector, which the Basler Zeitung had insight into in detail during previous sales negotiations.

New restructuring likely

Reliable sources assume that the newspaper printing and prepress areas in particular will have to be restructured again next year and around a hundred jobs will have to be cut. The legal independence of newspaper printing with the possible involvement of Peter Wanner's AZ Medien AG was also apparently under discussion, as the latter could well need a cooperation in view of his aging printing press. According to information from OnlineReports, however, the talks were broken off because Wanner insisted that “in the end everything should belong to him”. The Aarau publisher apparently wants to hand over a consolidated empire to his son in the middle of the golden triangle of Zurich, Basel and Bern.

With Moritz Suter in the BaZ cockpit, cooperation should be possible, he said. And Suter is a man who can think up creative deals. Like the arrangement that alarmed Basel parliamentarians ten years ago. Suter paid for his stately home on Augustinergasse, which belonged to the state, for over nine million francs with Crossair shares, which crashed a few months later.

Subscription decline halted

BaZ subscriptions are on the up – and this should not only please Suter. After Somm's appointment to Basel and Blocher's advisory mandate cost 1,850 subscriptions according to information from OnlineReports, things have been looking up again since Suter took office: up until Thursday morning alone, the subscription department has recorded 100 new additions. One source told OnlineReports: “The cancellations stopped in a flash.”

* at the media conference on 24 November in Basel

25 November 2010

Further links:

“They are sitting out the crisis like the SVP”

People like editor-in-chief Somm and lawyer Wagner don't really care about protests. And their arrogance stands in the way of learning. That means they will stubbornly sit out the crisis like the SVP. But you can meet guys like that through money: many have already done it and I too have canceled my subscription today – after twenty years. Sometimes you have to be able to let go. Only then can something new emerge, for example the “Basler Nachrichten”, integrated into an existing newspaper.

Peter BaslerBasel

“We continue to be sold as stupid readers”

First the big uproar over possible “Blocher influence” on the BaZ and now the bickering and puzzling over where the money came from that Moritz Suter had to shell out for the BaZ.

Silent partners in such a short time, even almost overnight, are probably very naive speculations. If Moritz Suter were to make the contract public, everyone would be able to sleep soundly again, but this will probably never happen because Mr. Tettamanti obviously still has money in the BaZ until Suter has paid off the entire claim, which will take some time.

The contractual agreement is that Suter has taken over 100 percent of the company, but only on paper. We are still being sold as stupid readers and the naive BaZ journalists and editors are happy. “Merggsch eppis”? And good luck to the BaZ.

Connie MeyerBasel

How long will Mr Somm resist the bullying?”

Now the time has come to put an end to the BaZ squabble. Tittomanti is right when he criticizes the “left-wing opinion terror” in Basel in other media and turns away from these “comrades” in disgust! What is left of Basel, which often and happily describes itself as “liberal and cosmopolitan”? I am curious to see how long Mr. Somm will resist the bullying and whether he too will throw in the towel.

Hans ZumsteinCham