End of an era in Irish media

For the first time in almost 40 years a member of the O’Reilly clan is not at the helm of Independent News and Media (INM).

Gavin O’Reilly’s decision to step down from the board of INM marks the end of an era dating back to Tony O’Reilly’s decision to take a stake in the newspaper in 1973.

Under his stewardship INM grew into a major player in the international media business.

The company went from an Irish-only operation to owning subsidiaries in Britain, South Africa, Australia and New Zealand

Tony O’Reilly, who received a knighthood in 2001 for “long and distinguished service to Northern Ireland” was a relatively popular newspaper owner. He had a reputation as a liberal owner. He said the only instance when he would envisage overriding an editor would be on the issue of support for politically-motivated violence to which he is implacable opposed.

In the aftermath of Gavin O’Reilly stepping down, one of the O’Reilly’s former employees Simon Kelner, the former editor-in-chief of The Independent, and The Independent on Sunday, the London-based papers that were part of INM until 2007, praised the family’s stewardship.

In a tweet yesterday, he said “It always ends and it always ends badly. The sad demise of the O’Reilly newspaper dynasty. A family of huge integrity who believed in papers.”

The O’Reilly’s time at the helm of INM was not with out controversy. Tony O’Reilly navigated his way through these troubled waters and retired happily to live as a tax exile in the Bahamas leaving his son, Gavin as the chief executive of INM after he stepped down in 2009.

The arrival of the telecom magnate Denis O’Brien who began buying shares in INM in 2006, marked the beginning of the end of the O’Reilly’s influence in the company.

Gavin O’Reilly faced a more challenging climate when he took over as chief. Not long into his tenure issues of financing the company began to surface, with questions over the rolling bonds which were being used to finance operations.

Mr O’Reilly managed to fend off an attempt by Mr O’Brien to seize control of the company when he successfully won support from the board of INM to settle an overdue €200m bond, after the firm’s directors rejected a rival refinancing plan from Mr O’Brien.

The success was short-lived. In Mar 2010 INM sold the prestigious London Independent and its sister title The Independent on Sunday to Russian tycoon Alexander Lebedev for £1. In Feb 2011 the Sunday Tribune in which INM had a 50% stake went into receivership, never to be published again.

Mr O’Brien continued to try to wrest control from the O’Reillys as bond issues rumbled on in the background. Yesterday’s resignation marks a seismic shift in the INM balance of power and the Irish media landscape.