Two years ago, Gannett "donated'' Oklahoma's Muskogee Phoenix to the foundation -- on April 3, 2006 -- then sold it downmarket about three weeks later for $24.5 million, the return shows, to privately held Community Newspaper Holdings of Birmingham, Ala. At the time, Gannett said the sale was part of its growing clustering strategy: Favoring newspapers that are near other papers, so the company can better merge editorial, business and other functions, to save money. "It was nothing about the people or the paper," said Dan Ehrman, vice president of planning and development, according to Editor & Publisher. "We're looking to build tighter clusters.''Gannett had owned the Phoenix, founded in 1888, since 1977, U.S. Securities and Exchange Commission filings show. Daily circulation was around 17,000. That means the sale price averaged $1,441 per subscriber. Long, long ago, when I reported on newspaper sales, the going price was around $1,000 per subscriber.
It'll be interesting to see how much the foundation got for last year's sale of the Chronicle-Tribune in Marion, Ind., when it was sold to Paxton Media Group, a corporate chop shop based in Paducah, Ky. We should know more when the foundation's 2007 tax return is filed later this year. In any case, the market for newspapers has been especially weak, given plunging revenue across the industry.
Doublecheck the math here. If the sale price was $25.4 million and the Phoenix had 17,000 subscribers, my calculator says it's about $1,441 per subscriber, not per 1,000 subscribers.
ReplyDelete-- Gannett vet
D'oh! You are correct! I'll update that as soon as I return to Gannett Blog's global headquarters. ;)
ReplyDeleteI'll be very interested to see that, too. Especially since Marion WAS clustered near other Gannett papers, so Ehrman's explanation doesn't hold a hell of a lot of water. How much more clustered can you get than within an hour's drive of three other Gannett papers?
ReplyDeleteNo brains, no guts, no ethics, no math, no skills.
ReplyDeleteNext.
Craig should take up bowling. Or take the whole gang on a boating trip to the Bermuda Triangle.
Frank Gannett is rolling over in his grave.
ReplyDeleteGreed,,,greedy greed of goofs.
Let's just sell off the losers and start with Westchester...and increase the stock dividends. 40 cents on shares down 50% in value.
Why doesn't Craig cluster two brain cells in his own head? And if too many local publishers and key managers aren't innovative enough...then explain why the entire industry is in misery.
ReplyDeleteKMart kept opening new stores for years in order to show growth. As did Woolworth, and Woolco, and Gimbels, and alot others. At some point, you have to use brains...ala marketing to sell your strengths.
But alas, marketing is the first to go. I doubt you'll see or hear any of your local properties promoting themselves.
You talk through both sides of your mouth. Keep it shut for once...and go sell an ad.
Maybe Jim can find out what the current marketing strategy is?
Strategy...it begins with an "S" it follows the "R" as in revenue.
You beat the piss out of publishers for years...from Curley on...and now expect miracles.
Blue light special in aisle 13.
That 17,000 number was circulation, not subscribers. Subscribers was around 13-13.5.
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