Sources inform ''Globes'' that "Israel Today" has initiated steps to establish its own printing house. Until now, the free daily newspaper, owned by Sheldon Adelson, has been printed by "Haaretz", and has also used "Haaretz's" distribution network.
At a meeting at "Israel Today" yesterday, it was reportedly decided to launch this strategic measure, which could have far-reaching consequences for Israel's print media. The plan also refutes claims that "Israel Today" is a passing phenomenon, and indicates that its owners intend it to be around for a long time.
The paper has allocated a special budget for the project, and has begun looking for equipment and a location. However, market sources believe that the project could take at least year to implement. A year ago, "Israel Today" was in talks with Ma'ariv Holdings Ltd. (TASE: MARV-M) to buy its printing house, but nothing came of them. "Israel Today", founded five years ago, therefore continued to be printed by Haaretz Group subsidiary Graphoprint Ltd. at Tel Yitzhak.
The circulation of "Israel Today" has also increased: the daily print run has risen to 275,000 copies, and the Friday edition's print run has risen to 350,000 copies (according to the paper).
Printing "Israel Today" generates at least NIS 100 million a year for Haaretz Group, and a well-informed market source believe that Haaretz makes an annual profit of NIS 15-20 million on the deal.
"Israel Today" has also begun setting up studios at its premises for broadcasting on a news website, which is now being established as part of a wider digital system. It cannot be ruled out that, in the future, Adelson will create full television broadcasts.
"Israel Today" declined to comment on the report.
Published by Globes [online], Israel business news - www.globes-online.com - on May 31, 2012
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