Hearst Corporation announced today that it has acquired the Westport News and six other non-daily Connecticut newspapers as well as the Connecticut Post in Bridgeport from Denver–based MediaNews Group, Inc.
While terms were not disclosed, The Associated Press reported that a person with direct knowledge of the deal who spoke on condition of anonymity said the price was $155 million.
The announcement was made jointly by George B. Irish, president of Hearst Newspapers, and Joseph (Jody) Lodovic IV, president of MediaNews Group.
With the acquisition of the Connecticut Post and its assets, Hearst also assumes management control of three other Fairfield County daily newspapers including The Advocate (Stamford), Greenwich Time (Greenwich), and The News-Times (Danbury).
Combined circulation of Hearst’s Connecticut newspaper properties is 137,000 daily, 151,000 Sunday and 53,000 non-daily.
Last March, Hearst acquired the assets of the Danbury newspaper. Eight months later, in November, it acquired the Greenwich and Stamford newspapers for $62.4 million. Up until today, MediaNews had managed all three newspapers together with the Connecticut Post under an agreement with Hearst that began in April 2007.
“The Connecticut Post has a long and rich history and Hearst is committed to continuing that tradition,” said Irish.
“Combined with our existing Connecticut news properties, we see unique potential to provide readers and advertisers with both high-quality and innovative news products. These are valuable markets for local media and we look forward to maximizing the opportunities among the properties using the Internet, packaged advertising sales, niche products and direct mail.
“We take pride in our industry leadership in these changing times and welcome the employees of these fine newspapers to Hearst Corporation.”
“This transaction allows MediaNews to manage its balance sheet during a challenging economic environment and transfer ownership of the Connecticut Post to a company we admire,” said Lodovic. “We are confident that the Connecticut Post and its fine employees will be served well and thrive under Hearst’s ownership.”
In addition to the Westport News, which recently moved its Westport office to the Norwalk headquarters of Brooks Community Newspapers, the weeklies that Hearst acquired are the Darien News-Review, Greenwich Citizen, Fairfield Citizen-News New Canaan News-Review, New Milford Spectrum, and Norwalk Citizen-News.
Hearst Corporation’s major interests include ownership of 16 daily and 49 weekly newspapers, including the Houston Chronicle, San Francisco Chronicle and Albany Times Union; as well as interests in an additional 43 daily and 72 non-daily newspapers owned by MediaNews Group, which include the Denver Post and Salt Lake Tribune.
It also has interests in almost 200 magazines around the world, including Cosmopolitan and O, The Oprah Magazine; 29 television stations through Hearst-Argyle Television; ownership in leading cable networks, including Lifetime, A&E, History and ESPN; as well as business publishing, including a minority joint venture interest in Fitch Ratings; Internet businesses, television production, newspaper features distribution and real estate.
MediaNews Group, Inc. is the nation’s fourth largest newspaper company and it and its affiliated companies publish 61 daily newspapers and approximately 100 non-daily publications in 13 states.
In addition, MediaNews Group owns a CBS affiliate in Anchorage, Alaska and four radio stations in Texas. MediaNews Group Interactive, MediaNews Group’s new media division maintains more than 75 Web sites for its daily newspapers.
The sale comes at a turbulent time in the newspaper industry as many companies have laid off employees and consolidated operations in the face of declining revenues and readership.
Among companies facing difficult times is Journal Register Co., whose holdings include the Westport Minuteman.
Journal Register, based in Yardley, Pa., and whose holdings also include the New Haven Register, was delisted from the New York Stock Exchange earlier this year and has filed with the Securities and Exchange Commission to deregister its common stock.
Recently it agreed to appoint Robert Conway of Conway, Del Genio, Gries & Co., LLC to the newly created position of Chief Restructuring Officer.
Standard & Poor’s downgraded Journal Register to the lowest credit rating possible, “D,” indicating a company is in default. S&P suggested that the company may file for bankruptcy protection.
