Bestselling Hungarian newspaper shut down under Orban relaunches online

BUDAPEST, Oct 8 (Reuters) - Nepszabadsag (People's Freedom), a leading left-wing Hungarian newspaper shut down a decade ago in a blow to media diversity under former prime minister Viktor Orban, relaunched on Thursday as an online news site and weekly magazine.

The newspaper - founded during Hungary's abortive popular uprising against Soviet domination in 1956 - was abruptly closed in 2016 by former owner Mediaworks.

Staff said at the time they believed the move was driven by their coverage of Orban, noting that their publication was Hungary's best-selling daily paper. Mediaworks cited financial losses.

Nepszabadsag's new Editor-in-Chief Akos Toth told Reuters independent journalism in Hungary "needs to return to a very classic, news-based journalism, to ask questions again and not state an opinion."

The relaunch of Nepszabadsag is funded by four Hungarian businessmen mainly involved in real estate investments abroad during Orban's tenure, Toth said.

"They are transparent, not hiding behind complicated company structures," Toth said, adding that, with Orban out of power since his April election defeat, the investors saw a business opportunity in reviving the widely recognised brand.

HUNGARY IS A TOUGH MARKET FOR A NEW OUTLET, EXPERT SAYS

Orban's Fidesz, which had a firm grip on Hungary's institutions for 16 years, is now backed by just one-fifth of voters. Hungary's parliament has set a two-term limit for prime ministers, effectively barring Orban from returning to power.

During his years in power, critics said media pluralism eroded as state media came under tighter government control and several private outlets - including Nepszabadsag - were shut down or acquired by pro-government owners.

Critics then accused the government of silencing dissent, but Orban's government denied exerting pressure on the media and said Hungary met European Union standards on media freedom.

The new outlet will employ about 90 staff members, mostly former employees of Nepszabadsag or left-wing daily Nepszava, which ceased its print edition in May.

The investors acquired Nepszava and rights to the Nepszabadsag brand last month, Toth said, committing to finance operations for two years with plans to break even through advertising revenue and subscriptions.

Market challenges persist, however, with Hungary's media heavily affected by distortions from state advertising channelled to political allies under successive Orban administrations.

Agnes Urban of the think tank Mertek Media Monitor said that market-based advertising money has not replaced state advertising, and companies are more interested in advertising near entertainment content than politics and news.

"It is a tough scene for a startup, and Nepszabadsag will be exactly that after a hiatus of 10 years."

(Reporting by Anita Komuves; editing by Philippa Fletcher)