One of the main news stories here last week concerned the sale of the company Árvakur, which is best known for publishing Morgunblaðið, which has been a daily newspaper here since 1913. For several decades it was the mouthpiece for the Independence Party, but has eased up on the propaganda in recent years and is today considered one of the more credible media here in Niceland. Affectionately known as “Mogginn”, it is one of those national institutions that many people cannot imagine being without.
Like most media in Iceland, it has struggled financially, especially with the growth of main rival Fréttablaðið over the last five years or so, which cut heavily into its advertising and subscription revenues. [Fréttablaðið, incidentally, is largely owned by Baugur Group and has allegedly been operated with heavy losses for years.]
Árvakur was one of the first casualties of the kreppa last fall and had to declare bankruptcy. Since then there has been much talk of how to keep the publication of Morgunblaðið going and various parties have expressed an interest in buying up the assets of the company. Three formal offers had been received by last week – two of them were by groups of Icelandic investors, and one of them was from an Australian investor by the name of Steve Cosser.
People here didn’t quite know what to make of this Cosser fellow. Rumours quickly began circulating that he was a leppur - a front man for an Icelander who preferred to remain hidden – after all, what sort of potential could a foreigner see in an Icelandic publishing house that was pretty much guaranteed not to turn a profit [much]?
In a move guaranteed not to win him any popularity contests here on the cube, this Cosser character became highly agitated at the very suggestion that he might be a leppur and declared on the Channel 2 evening news that he would find the person who was responsible for spreading the rumour and when that person was found he planned to take “appropriate action” [I will hunt you down ... etc]. And as if to ingratiate himself even more, he went on to declare that his house in London cost 13 times more than Árvakur [GASP!], after which he made the sweeping announcement that not only was he interested in investing in Nicelandic media, but also in geothermal power plants, tourism companies, etcetera.
That was the point that gave people pause. Could it be that Cosser was one of those financial vultures that people keep warning about in connection with the International Monetary Fund? The kinds of “investors” that circle slowly over the rotting carcasses of busted economies, waiting to pick at the bones of bankrupt companies being sold off to the highest bidder?
Cosser had so much faith in his financial prowess that it apparently never entered his mind that his planned shopping spree might not be launched instantly – more than once he declared, on the record, that he was “absolutely certain” that his offer in Árvakur would be accepted.
Alas, he was wrong. One of the Nicelandic groups apparently had the higher offer and was thus successful in securing the acquisition of Árvakur. Cosser, on the other hand, abruptly cancelled an appearance on a TV talk show that evening, and has not been heard from since.
Gone for good? – We can only hope.
GOOD THING THE WEATHER’S NOT FOR SALE
Because it has been a gorgeous weekend – the sort of weekend the Steve Cossers of this world are no doubt dying to acquire. What has made it particularly gorgeous is, of course, the absence of wind – all weather is fabulous in Iceland when there is no wind. Yesterday the sun even decided to grace our fair land with its presence. The pesky wind had picked up by this evening and we had some flurries that appear to have stopped now. It’s currently 3°C [37F], sunrise is at 8:35 am and sunset at 6:46 pm.
{ 22 comments… read them below or add one }
He certainly does sound like a “financial hawk”.
V.
Cosser’s tirade was partly due to a “cultural misunderstanding.” In England and Australia the laws of libel and defamation are such that you can sue anyone for any untrue public statement (unlike the USA where you can call anybody anything you like) so it’s common for public figures to sue and threaten and bluster.
I guess that approach didn’t go over too well.
I would like to say that this story had a happy ending but unfortunately it didn’t. Old MB has ended up in the hands of another right-wing establishment clique and will continue to be a mouthpiece for Sjalfgraedisflokkur propaganda. And maybe Oddson will become editor.
The debtors owed the government so really it was the government who gave away the paper for a cheap price. It should have nationalized – is that too radical a thought?
The Penis Mall group owns the news, eh? Scary.
Gee, why would a foreigner be interested in Iceland?
Is it zenophobia, or a self-esteem problem?
Some of us just like Iceland – fascinated by the climate, geography, people and history. Some foreigners move, learn the language, work in the country, get fired and can’t collect UI, and marry their Icelandic loves just to stay in the country that appears to despise them.
If I was independantly wealthy I might want to buy into the Icelandic economy and I’m sorry about it, but now is a really good time for it. As it is, I’m merely hoping that my planned visit in June won’t cost the same arm and leg that last year’s trip did.
Flygill – I guess that approach didn’t go over too well. — personally I don’t see that approach going over well anywhere. Why would it?
Karen – that may very well be, but I saw nothing in Cosser’s demeanor or declarations to indicate that he was investing out of a pure love for this country. Quite the opposite, in fact – if anything, he came across as arrogant and contemptuous of the people here.
And, if I may say so, equating the questioning of his motives with xenophobia is rather extreme. Unfair laws notwithstanding, the people of this country do not despise foreigners.
Alda, speaking of unfair laws, it is very hard to create totally fair laws and would his situation have been different if he had been an Icelander in, say, the USA or Switzerland just to name examples?
Sigvaldi – I’m not familiar with the laws in those countries, so I really can’t say. But I know it is difficult for foreign residents in many countries – I speak from experience, since I had a situation very similar to Jonas’s when I lived in Germany, before Iceland joined the EEA. However, I’m thinking in particular of the unfairness of the unemployment laws – I don’t think anyone should be obligated to pay into an unemployment benefit fund, and then be refused those same benefits. I wonder if those same laws apply in other countries – I never had that precise situation arise when I was in Germany, but I was entitled to maternity leave, for example, on the same terms as any other resident or citizen.
declare that his house in London cost 13 times more than Árvakur
Maybe I should sell my London flat and buy Árvakur! Rosebud…
An Australian ‘arrogant and contemptuous’?…. Never!… haven’t you ever seen how humble and modest the Australian cricket team is… just ask the Indian cricket team.
If Cosser was a leppur he would most likely be corsairing for Rupert Murdock, a world-empire right-wing media magnate.
Come to think, i’nt ” cosser” how the Oz ies pronounce “corsair”?
I might be wrong, but for the U.S. I thought it was the employer who pays into unemployment benefits, not the employee …
Elín I don’t think its any different than in Iceland, it is the employers responsibility to pay the tax, but the tax is a percentage of the employees salary. Not that I’m an expert, I’m self employed in the US and cant receive unemployment benefits.
I agree with Alda here, I think Cosser thought it was a great opportunity for a bargain deal. I cant however figure out why he was interested as the Icelandic media is hardly a huge money making machine, haven’t the papers and the tv stations been barely breaking even for the past few years? If he wanted to buy Icelandair, it would make sense. But Morgunblaðið/Árvakur. I dunno… There’s something fishy about this. In any case I’m glad it didn’t happen.
I think its normal for Icelanders to want the biggest paper to remain in the ownership of other Icelanders and I don’t see anything Xenophobic about it.
Perhaps Iceland is soon to be subject to the capitalists’ exploitation and abuse described in Naomi Klein’s book, The Shock Doctrine: The Rise of Disaster Capitalism.
It’s one thing to read about such things in the abstract, another thing to see it in action. If I see one more ‘entrepeneur’ stating that the Chinese have the same symbol for ‘crisis’ and ‘opportunity’ I’m going to punch him in the face! MY crisis is not YOUR opportunity! Sod off, mate.
GB – he wouldn’t need to be a leppur for Murdoch – I don’t see any reason for him to want to hide. Whereas I could see lots of reasons for Icelanders to want to hide while seeking to push their own interests in the country’s most established newspaper.
Elín – I think RK is right, it’s a share of your wages that goes into the unemployment fund.
RK – precisely – there is something fishy about someone coming from abroad and wanting to own the Icelandic media – Icelandair or one of the geothermal power companies is one thing, but when he covets the media there’ s something wrong.
Some people wonder if he was after Morgunblaðið’s new printing division – they have the most state-of-the-art printing press in the country. Had Cosser bought mbl he could easily have dismantled the entire printing press and moved it abroad. In fact, that’s what most of us here fear in relation to these ‘vultures’ who chase the IMF … that they’ll take our best assets at sale prices, and simply move them out of the country.
I don’t know Steve Cosser and I’m not an Australian. I looked up who this Cosser chap was and found out that he started out as a journalist and made his money in media investments (Pay-tv, Internet and the like). Sounds to me that when he is looking for a media company to invest in he knows the business pretty well. Also, it would be a little naive to expect private investors to cough up money and not expect a return, so any attempt of his to get his hands on a paper as cheaply as possible looks reasonable to me.
So what about strategic Icelandic assets ending up in foreign hands? It happens. Sweden’s cars ended up in American hands and Iceland’s aluminium smelters are not in Icelandic hands either.
And what about the possible debasement of journalistic standards? It is a likely risk. Though if there is a market for good journalism and no offerings, people will find other ways to get their information. Be it via blogs, radio programs, television or whatever.
Just my opinion. I don’t mean to offend anyone and certainly don’t condone him making offensive or derogatory comments.
Alda, I agree in regard to the unemployment regulations but these are the same rules applied throughout the EEZ, an Icelander who moves to a EU country has to work there (and pay the applicable taxes) for a period before having any rights there and the same applies to Icelanders moving back home after having lived abroad:
(http://www.mbl.is/mm/frettir/innlent/2009/03/03/kaldar_mottokur_eftir_nam_erlendis/)
So the unfairness seems to be pretty evenly balanced
There is an interesting article about the whole mess in Vanity Fair. It’s long, but worth the read. http://www.vanityfair.com/politics/features/2009/04/iceland200904
I gave up after the first two pages, it is so full of inaccuracies, exaggarations and nonsense and definately not worth the read.
Alda – Cosser leppuring for Murdock, if he was, would be to keep reaction from beginning a bid war. Another possibility would be leppuring for the selling owners: A foreigner making a move on an Icelandic institution would push patriots to bid up, perhaps to throw together to afford higher bids. Cosser simply disappearing after, if he has completely, would suggest this role, often called a “ringer”. I suspect it more likely than my Murdock suggestion.
On the other hand, with excellent press equipment and a weak currency, Iceland may have a future as a job-print shop, with paper shipped in and books shipped out for warehousing elsewhere, printing done automatically, from copy prepped elsewhere.
You’re right, and I’m sorry. I did get carried away.
I guess all that high school clique stuff shutting me out has scarred me for life!
Karen – ‘s okay. No hard feelings.
I googled him and his history … if he was trying to buy into the company its because of value. The only other companies I know of that he bought into was , a pay TV chan in Aus and unwired (internet) in Aus. He stayed in both for many years … doesnt sould like a vulture to me ….