Monday, November 2, 2015 – 08:30 a.m.
Freedom Communications, parent of The Press-Enterprise and Orange County Register newspapers has filed for chapter 11 bankruptcy protection.
What a shock!
We’ve been writing extensively here about the viability of the local Inland newspapers.
Earlier this year, Digital First Media (DFM), parent of the Redlands Daily Facts, The Sun and Inland Valley Daily Bulletin newspapers took itself off the sales block, after the the company failed to garner a high enough sales price.
DFM, which owns The Denver Post as its flagship publication, was seeking a figure in the area of $600 million, but instead reportedly attracted interest at around $400 million. That interest was from a hedge fund that likely wanted to break up DFM and sell the pieces for more than the whole.
Newspapers have been on a failed business model track for years and the Freedom announcement is merely a symptom.
Freedom’s CEO, Richard Mirman, who is leading a buyout group to takeover the company, says it’s turning a new page.
It’s just more blah, blah, blah….
Don’t these soothsayers always tell us this and then proceed to lose more money?
You have to admit that something is definitely wrong when the very same newspapers, whose physical size is somewhere near a roll of toilet paper, draw leads from local blogs.