MediaNews Group is among bidders thought to be circling Freedom Communications, parent of the Orange County Register and more than 100 other newspapers, plus a group of eight TV stations.
The company in Irvine, Calif., which emerged from bankruptcy a year ago, this week is giving bidders several options. Suitors can make offers for the entire company, or they can separately bid on the TV stations; the newspapers, or on the 277,000-circulation Register alone, The Wall Street Journal says in a story today. Bids are due today.
Should MediaNews succeed in winning any of the papers, a logical question emerges: Would it share any with Gannett? GCI and MediaNews already are partners in the GCI-controlled Detroit joint operating agency, plus a publishing partnership with dailies in California, Texas, New Mexico and Pennsylvania.
From GCI's annual 10-K report to the U.S. Securities and Exchange Commission: The company owns a 19.49% interest in California Newspapers Partnership, which includes 19 daily California newspapers; a 40.64% interest in Texas-New Mexico Newspapers Partnership, which includes six daily newspapers in Texas and New Mexico and four newspapers in Pennsylvania; and a 13.5% interest in Ponderay Newsprint Company in the state of Washington.
Other possible Freedom bidders include Tribune Co.; Gores Group; and Platinum Equity, owner of the San Diego Union Tribune, the WSJ says, citing "people familiar with the matter."
The company in Irvine, Calif., which emerged from bankruptcy a year ago, this week is giving bidders several options. Suitors can make offers for the entire company, or they can separately bid on the TV stations; the newspapers, or on the 277,000-circulation Register alone, The Wall Street Journal says in a story today. Bids are due today.
Should MediaNews succeed in winning any of the papers, a logical question emerges: Would it share any with Gannett? GCI and MediaNews already are partners in the GCI-controlled Detroit joint operating agency, plus a publishing partnership with dailies in California, Texas, New Mexico and Pennsylvania.
From GCI's annual 10-K report to the U.S. Securities and Exchange Commission: The company owns a 19.49% interest in California Newspapers Partnership, which includes 19 daily California newspapers; a 40.64% interest in Texas-New Mexico Newspapers Partnership, which includes six daily newspapers in Texas and New Mexico and four newspapers in Pennsylvania; and a 13.5% interest in Ponderay Newsprint Company in the state of Washington.
Other possible Freedom bidders include Tribune Co.; Gores Group; and Platinum Equity, owner of the San Diego Union Tribune, the WSJ says, citing "people familiar with the matter."
If Gannett were intersted in any of Freedom's properties, we would already be there and not looking to "share" anything with Billy Dean. But the fundamental fact is that GCI cannot shoulder any more debt. Thanks to Gracia's mismanagement of the finances, we are already on precarious ground with our debt classified in junk levels and dangerously close to violating our covenants with the banks. I think the Orange County Register would be a great purchase, but we plain can't afford it.
ReplyDeleteThe sad thought is not if we can affording the Orange County Register, but whether register can afford us.
ReplyDeleteOne would have to be mentally challenged to buy a paper
ReplyDeleteIf the wsj story is correct, it looks like the only big contenders are already bankrupt newspaper chains.
ReplyDeleteReally, you think Gracia mismanaged the debt? She saved your ass by getting bond holders to roll it over back in the thick of the financial crisis. If you want to look at debt mismanagement, you'll need to go back a little further and thank your former chairman who went on a spending spree before he retired. Every day since he left has been spent trying to pay down his ego trip.
ReplyDelete12:16 Please; put away the violin. There's plenty of blame to go around. Some noteworthy examples:
ReplyDeleteCurley engineered the 1999 Newsquest deal ($1.5 billion). McCorkindale brought us Central Newspapers in 2000 ($2.6 billion). And Martore/Dubow spent $1.8 billion buying back stock in 2005-2008. Average price per share they paid: $64.
Jim, Don't forget the creation of Crystal Palace, a costly fiasco too. Was that Corky too? Or do the Curleys shoulder that one?
ReplyDeleteI suspect the Crystal Palace was a joint Curley-McCorkindale production.
ReplyDeleteThe Florida Freedom newspapers would make perfect sense for Gannett with their proximity to Pensacola and Tallahassee.
ReplyDelete