Is Trinity Mirror strong enough to deal with NI-style hacking allegations?
The worrying signs that Trinity Mirror may be on the cusp of being engulfed in scandal poses a question about how far the hacking allegations will extend beyond NI. The level of scandal and litigation that Trinity Mirror is facing could be deeply damaging. Sly Bailey made some hundreds of millions disappear from the share price during her tenure, and I fear that more bad news could accelerate its losses even further.This is especially concerning considering a key NI editor had been in place at the Mirror.Against a backdrop of investor fatigue at having to foot the bill for an internal inquiry, this only spells trouble for the media group. More damaging news could send shares plummeting even further and advertisers walking, NI-style.
Will it replicate News International’s approach of hefty legal bills, strikes and the breaking up of its print titles? Technically, the group’s hefty stable of 260 titles and 6,000 staff should be protected – yet in a tough trading environment, it will be interesting to see how the new CEO will fare at steering this crisis. I fear that the potentially damaging allegations will be be too much to save the paper – against a backdrop of growing investor fatigue, does this signal that the hacking scandal has an even higher profile than originally thought?