Related Posts: InlandPolitics: Newspaper decline continues
Tuesday, January 27, 2015 – 09:30 a.m.
Bloomberg is reporting that two private equity firms are taking a close look at a possible buyout of the parent company of The Sun, Inland Valley Daily Bulletin and Redlands Daily Facts newspapers.
Cerberus Capital Management LP and Apollo Global Management are separately considering a purchase of Digital First Media (DFM).
DFM owns 76 daily and 160 weekly newspapers in 15 states. The Los Angeles and Bay Area News Groups are part of the company.
For years, DFM has been struggling to make a profit amid declining circulation. The company placed its flagship Denver Post up for sale last fall.
DFM believes its worth $600 million as a whole. We’ll wait and see if that kind of pipe dream number materializes.
The company has also said it doesn’t want to sell itself off in pieces. But if a total sale doesn’t occur it may have no other choice.
The company’s Inland Empire newspapers have been shrinking in content for years due to a decline in advertising and paid subscriptions. Along with the aforementioned woes, throw in a lack of investigative reporting, killing politically-sensitive stories, protecting advertisers from negative news, etc…
When local blogs and weekly newspapers routinely scoop local general circulation newspapers it’s definitely a problem. Newspapers spooning out Gerber to readers doesn’t serve the public interest no matter how you slice it.
Should either of these bidders get the company, it’ll be interesting to see just how they realign operations to make a profit.