Latvia's Leading Newspaper Sold

UNCLAS RIGA 000365 SIPDIS E.O. 12958: N/A TAGS: SCUL KPAO PGOV ECON LG SUBJECT: Latvia's Leading Newspaper Sold ¶1. Diena, Latvia's leading daily newspaper was sold on July 3. The new owners have promised no editorial changes, but some observers are skeptical of these claims. With circulation of close to 80,000, Diena is the preferred newspaper among opinion-makers in Latvia, and is considered the county's most influential newspaper. The company also publishes a business daily, Dienas Bizness, and several regional newspapers. ¶2. Bonnier Group, a privately-held Swedish firm, sold the publishing house to Nedela S.A, which is owned by a former Diena director, Aleksandrs Tralmaks. Tralmaks is the sole owner of Nedela S.A, but the deal was fully financed by Luxembourg Financial Services (LSF). The amount of the deal is being kept confidential but it is estimated around 45 million lats (90 million USD). According to press reports, LSF is owned by a group of Estonian entrepreneurs, but the actual source of funding remains a topic of speculation. Some have reported that the owners are Russian businessmen, prompting concerns about the future of the paper. ¶3. There is some uncertainty among observers about the effect that the sale will have on the high journalistic standards of the newspaper. In a statement to the press, Tralmaks insisted that the paper would continue the traditions of independent journalism and freedom of speech that "have always been the core values of the newspapers Diena and Dienas Bizness". That sentiment was echoed in an editorial by Diena editor-in-chief Anita Brauna. Anda Rozukalne, a noted journalism professor, expressed skepticism that the new ownership would not affect the paper's editorial standards. Current and former employees, including a former editor-in-chief, have told Embassy officers that they remain optimistic that the sale will not affect the paper's independence. ¶4. Comment: Diena is Latvia's best source for objective investigation and political analysis. While there is no immediate indication that Diena's place as an independent voice is in jeopardy, the sale of the paper is cause to watch the situation carefully as the sources of funding for the sale become clearer. In the end, the core of Diena's writers and editors are hard-charging and principled journalists. If the new owners make changes affecting the editorial freedom of the paper, it is unlikely that they would stay. Rogers