Guardian to sell digital arm

The owner of the Guardian newspaper is set to sell a digital publishing business it bought just three years ago, as part of a wider drive to overhaul the company and stem losses.

Guardian Media Group (GMG) has revealed it was in talks with buyers to offload ContentNext, which oversees digital operations.

It is understood that the business is being marketed for US$15 million ($20 million) to US$20 million.

A spokeswoman said: "It's early days but we have received several expressions of interest and are talking to a select number of potential buyers."

She said the decision came after a strategic review of Guardian News & Media, the division of GMG that oversees newspapers, before adding: "ContentNext is a high-quality asset but our focus in the US is on building the Guardian."

It emerged in June that Guardian News & Media made operating losses of £38.3 million ($80.3 million), widening from £37.8 million a year earlier.

The group announced a "digital first" strategy and drew up a plan to save £25 million by 2016.

Andrew Miller, GMG chief executive, said the group could run out of cash in three years if there was not an overhaul. It emerged this month that the group was considering closing its £80 million printing plant.

The group bought ContentNext in 2008 for an undisclosed fee.

It said the acquisition of the group set up by journalist Rafat Ali in 2002 was to target "significant expansion" in the United States.

- Independent