Post by bob quarteroni on Mar 14, 2012 14:31:22 GMT -5
By RUSSELL ADAMS, WALL ST. JOURNAL
Freedom Communications Inc. is exploring the sale of most of its remaining 24 daily newspapers, say people familiar with the matter, in what would be the latest step towards a dismantling of the onetime newspaper and TV powerhouse.
Freedom, the Irvine, Calif.-based company whose best known newspaper title is the Orange County Register, has been negotiating with several prospective buyers of its newspapers in Florida, North Carolina and Texas, among other states, the people said. It is unclear whether the Orange County Register is the subject of any discussions.
The talks come just a few months after Freedom agreed to sell its eight TV stations to Sinclair Broadcast Group Inc. for $385 million. Since Freedom emerged from Chapter 11 bankruptcy protection in April 2010, hedge funds which now control it have been trying to auction its assets. In February Freedom sold its two New Mexico daily papers, the News Journal in Clovis and the Portales News-Tribune, to Clovis Media Inc.
Freedom was in talks last year to sell all of its more than 100 daily and weekly newspapers to Denver Post publisher MediaNews Group for around $350 million, but the deal got derailed because of MediaNews' difficulties obtaining financing.
Among the parties involved in recent discussions are Halifax Media Holdings, backed by Stephens Capital Partners, of Little Rock, Ark. Earlier this year Halifax acquired 16 local papers, most of them in the Southeast U.S., from the New York Times Co. in a $143 million deal. Halifax is exploring the possible purchase of Freedom's publications in Florida and North Carolina.
Also involved in recent discussions is private-equity firm Versa Capital Management, based in Philadelphia, Pa., which owns more than a dozen daily papers in Ohio, among other publications. Earlier this month, the firm acquired the Wilkes-Barre Times Leader in Pennsylvania. Versa has been in talks about acquiring at least some of Freedom's Midwest papers.
A group led by Jeremy Halbreich, former chairman and chief executive of the Chicago Sun-Times, is in discussions to buy Freedom's papers in Texas.
The talks, which in at least some cases would include non daily publications, are at various stages and might not result in any deals, a person familiar with the matter said. Talks between Freedom and Anthem Newspaper Holdings about selling Freedom's Gazette newspaper in Colorado Springs, Co. recently broke down, the people said.
Mr. Halbreich and a representative from Versa declined to comment and Halifax did not respond to requests for comment.
"Freedom doesn't comment on rumor and speculation," a spokesman for the company said.
Freedom was founded in the 1930's by R.C. Hoiles, a former printer's apprentice who used his media properties to spread his libertarian views. By the time Mr. Hoiles died in 1970, Freedom owned 16 daily newspapers in seven states. In subsequent years, Freedom expanded to include dozens more newspapers and several local television stations.
In 2004, divisions within the Hoiles family over what to do with the company led to a deal in which the private-equity firms Blackstone Group and Providence Equity Partners acquired a 40% stake in Freedom for about $460 million.
Freedom Communications Inc. is exploring the sale of most of its remaining 24 daily newspapers, say people familiar with the matter, in what would be the latest step towards a dismantling of the onetime newspaper and TV powerhouse.
Freedom, the Irvine, Calif.-based company whose best known newspaper title is the Orange County Register, has been negotiating with several prospective buyers of its newspapers in Florida, North Carolina and Texas, among other states, the people said. It is unclear whether the Orange County Register is the subject of any discussions.
The talks come just a few months after Freedom agreed to sell its eight TV stations to Sinclair Broadcast Group Inc. for $385 million. Since Freedom emerged from Chapter 11 bankruptcy protection in April 2010, hedge funds which now control it have been trying to auction its assets. In February Freedom sold its two New Mexico daily papers, the News Journal in Clovis and the Portales News-Tribune, to Clovis Media Inc.
Freedom was in talks last year to sell all of its more than 100 daily and weekly newspapers to Denver Post publisher MediaNews Group for around $350 million, but the deal got derailed because of MediaNews' difficulties obtaining financing.
Among the parties involved in recent discussions are Halifax Media Holdings, backed by Stephens Capital Partners, of Little Rock, Ark. Earlier this year Halifax acquired 16 local papers, most of them in the Southeast U.S., from the New York Times Co. in a $143 million deal. Halifax is exploring the possible purchase of Freedom's publications in Florida and North Carolina.
Also involved in recent discussions is private-equity firm Versa Capital Management, based in Philadelphia, Pa., which owns more than a dozen daily papers in Ohio, among other publications. Earlier this month, the firm acquired the Wilkes-Barre Times Leader in Pennsylvania. Versa has been in talks about acquiring at least some of Freedom's Midwest papers.
A group led by Jeremy Halbreich, former chairman and chief executive of the Chicago Sun-Times, is in discussions to buy Freedom's papers in Texas.
The talks, which in at least some cases would include non daily publications, are at various stages and might not result in any deals, a person familiar with the matter said. Talks between Freedom and Anthem Newspaper Holdings about selling Freedom's Gazette newspaper in Colorado Springs, Co. recently broke down, the people said.
Mr. Halbreich and a representative from Versa declined to comment and Halifax did not respond to requests for comment.
"Freedom doesn't comment on rumor and speculation," a spokesman for the company said.
Freedom was founded in the 1930's by R.C. Hoiles, a former printer's apprentice who used his media properties to spread his libertarian views. By the time Mr. Hoiles died in 1970, Freedom owned 16 daily newspapers in seven states. In subsequent years, Freedom expanded to include dozens more newspapers and several local television stations.
In 2004, divisions within the Hoiles family over what to do with the company led to a deal in which the private-equity firms Blackstone Group and Providence Equity Partners acquired a 40% stake in Freedom for about $460 million.