Dennis Publishing and Immediate Media Co – joint-owners of subscriptions management specialist Dovetail Services Ltd – have decided not to renew their joint venture agreement when it expires in April this year (2017).
The owners believe that the current market is over-served by existing providers and consolidation is inevitable. Additionally, Dovetail has been consuming cash for some time and the investment required in the business no longer matches the opportunity in an uncertain market context.
After several months of consideration, and given the range and strength of existing providers in the market, the owners have concluded it’s no longer in the best strategic interests of either shareholder to maintain ownership of a subscriptions management operation.
The shareholders have agreed to extend the joint venture to January 31 2018 so that the company can continue to trade through 2017, while it undergoes a well-managed closure process. Alongside Dennis and Immediate, Dovetail provides subscriptions management services to a roster of independent publishers. Dovetail will now be focused on ensuring a smooth transition of services for all clients during 2017. Meanwhile, Dovetail staff affected by the decision are in consultation with management.
Dovetail Services Managing Director Rupert Miles said: “I believe that Dovetail staff have achieved much over the time that I have been with the company. I’m very proud of them and would like to thank them for their energy, enthusiasm and professionalism.
"Now, mindful of the wishes of the shareholders, I and the Dovetail team will focus our attention on ensuring all our clients are transitioned out of Dovetail as smoothly as possible.”