Newspaper giant buyer unlikely to be big chain

Written By Unknown on Minggu, 14 September 2014 | 00.48

Newspaper behemoth Digital First Media's announcement yesterday that it's exploring the sale of its publications, which include 16 Bay State papers, came as little surprise to industry analysts, who say any buyer will most likely be someone with deep pockets, rather than a traditional newspaper company.

"There might be attempts by local private investors, wealthy people who feel a sense of obligation to the community," said Boston University journalism professor Lou Ureneck.

Both Ureneck and Alan Mutter, a San Francisco-based media consultant, cited as an example Red Sox owner John Henry, who bought the Boston Globe last year. Ureneck also cited H.F. Lenfester, who bought the Philadelphia Inquirer and Philadelphia Daily News this year.

"The first people who will not buy it is someone like Gannett or Tribune Company ... because the newspaper business has been shrinking," Mutter said, "and there's no end in sight."

Ureneck said the announcement by Digital First Media, whose newspapers include the Lowell Sun and the Berkshire Eagle, was expected because the company — the nation's second largest newspaper publisher — is the combination of two previous newspaper companies that had a "reputation for a strong focus on the bottom line."

"The owner of Digital First is a hedge fund, and its private equity bet ... appears not to have worked out," he said. "If it sells, it is likely to be broken into regional pieces that make sense in terms of content, advertising and audiences."

Digital First said it has not set a timeline for completing its review process.


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