Egmont Media restructures to comply with new media law

The Danish publishing company Egmont Media Group has announced that it is to transfer its Russian magazine business interests to a local company and  joins the  growing list of media companies to unveil their response to the new law limiting foreign ownership of Russian media.
The company has built up a 60% share in the Russian children’s magazine market and its publications include My Little Pony, Luntik and Masha. Under the terms of the new arrangement, Egmont will continue to produce books in the country, but will pass the rights to publish its magazines to a newly created Russian company that will be run by Mikhail Morozov, currently editor-in-chief and the deputy general director of Egmont Russia.
The reorganization is a response to legislation passed last year that limits the stake of foreigners in Russian media outlets to 20 percent. The law, which affects most of the country’s publishing houses, comes into force on Jan. 1, 2016, though companies have another year’s grace period to comply.