In what was portrayed as a “ringing endorsement” of its digital strategy, The Journal Register Co., parent of the weekly Westport Minuteman, has agreed to be bought by a New York hedge fund.
The acquisition by the Alden Global Capital hedge fund was announced Thursday. It came less than two years after the newspaper and digital media publisher emerged from bankruptcy protection and implemented an expansive digital presence. Terms were not disclosed.
Even before the announcement, the Pennsylvania-based Journal Register Co., which also owns the Fairfield Minuteman, New Haven Register, and Housatonic Times among other Connecticut newspapers, has undergone consolidation.
The Minuteman – like the rival Hearst-owned Westport News – no longer has a physical office in Westport. The Minuteman closed its Westport office in January, moving to New Haven where operates out of the New Haven Register. (See WestportNow Jan. 20, 2011)
The move left Westport without a town presence of either of its newspapers The Westport News closed its Westport office in June 2008, first moving to Norwalk, then Fairfield.
John Paton, Journal Register CEO, called the move a vote of confidence by Alden in the company’s “Digital First Strategy” and indicative of the company’s turnaround.
Writing on his “Digital First” blog aimed at employees, Paton called the acquisition “terrific news for us.”
He added: “Alden has been an investor in our Company for some time and they have had a courtside seat to the Journal Register Company’s radical makeover following our Digital First strategy. They know what we do, they like what we do, and today they are putting their money behind our efforts.
“Alden knows the media space well and has other newspaper company investments. Today’s announcement is a ringing endorsement of your efforts and demonstrates Alden’s confidence in our business model. Importantly, it also positions us well to continue to pursue our Digital First strategy and expand our Company going forward.”
Paton, in an interview with The Associated Press, stressed the importance of the news consumption shift to the Internet.
“The customers have spoken,” he said. “More Americans want their news via the web than from print. More companies and advertisers who want to reach those Americans are spending more money on advertising on the web than in print.”
Uh oh. It sounds like they are going to phase out our Westport Minuteman. I wonder what customers they spoke to because no one asked me. I want the printed newspaper.