The publishing house Kommersant agreed to merge its Internet newspaper Gazeta.ru into SUP, the owner of LiveJournal, reported both Gazeta.ru and business daily Kommersant. As a result of non-cash deal, Kommersant will obtain just under 50% stake in SUP and nominate two directors to SUP‘s Board.
According to TNS Web Index, the daily audience of Gazeta.ru was more than 110 thousand in Moscow in May 2008 and SUP‘s own web properties LiveJournal.com, LiveJournal.ru, and sports site Championat.ru together had more than 600 thousand monthly users.
While SUP‘s web properties have audience much larger than Gazeta.ru, SUP‘s revenues were estimated at $6 million in 2007 vs. Gazeta.ru‘s $5 million. Gazeta.ru is expected to generate revenues of $10 million in 2008 and net profit of $2 million.
Kommersant owned Gazeta.ru as a result of the acquisition of the Secret Firmy publishing house in December 2006. SUP acquired the LiveJournal blogging business for an estimated $30 million from SixApart in December 2007.