76 newspapers could be going up for sale

By Keith J. Kelly
September 12, 2014 | 3:44pm

Digital First Media, the nation’s No. 2 newspaper chain, said Friday it is exploring “strategic options” to include a full or partial sale of the company.

Chief Executive John Paton said the publisher of the Denver Post, the Los Angeles Daily News, the New Haven Register and 73 other daily and Sunday papers is profitable and generates $1.2 billion of revenue.

“Other than the usual die-hard skeptics, it is now a given that newspapers, as multi-platform news organizations, will thrive in the future as the best and biggest providers of local news and advertising in their markets,” Paton said in a memo to employees.

The decision comes at a time of rapid change as publicly traded media companies are spinning off their publishing holdings from their TV operations.

“Pure plays are being recognized as companies that have a big future,” said Paton.

The company’s controlling shareholder, hedge fund Alden Global Capital, apparently wants out, while a buyer for the company may be hard to find.

“The pool of buyers for big newspaper companies is getting smaller by the day,” said one well-placed media source.

Digital First was created in December through the merger of MediaNews Group and the former Journal Register Co., which emerged from bankruptcy early last year.

Digital revenue of $200 million a year accounts for about 20 percent of the company’s total, according to Paton, although he acknowledged that has yet to offset the decline in print advertising.

The company said there is no schedule set for the completion of its review.

http://nypost.com/2014/09/12/digital...of-newspapers/