Friday, March 27, 2015 – 09:00 a.m.
The price tag for Digital First Media (DFM) is shrinking.
The indicated sale price of DFM, the parent company of Southern California newspapers, which include The Sun, Daily Bulletin and Redlands daily facts has dropped from $600 million to $400 million.
DFM, which has held itself up for sale for more than six months, has two potential bidders in private-equity firms Apollo Global Management and Cerberus Partners.
The latest estimated sale price is 33% below what DFM executives thought they might garner. It’s another example of the value of what many believe is now a failed business model.
DFM is currently owned by New York-based hedge fund Alden Global Capital.
Other DFM newspapers include Los Angeles Daily News, Daily Breeze, Long Beach Press-Telegram, San Jose Mercury News, San Gabriel Valley Tribune, Pasadena Star-News and Whittier Daily News.
The DFM flagship newspaper, the Denver Post, has been on the sales lot for a significant period of time with no takers until now.
Here’s an interesting take on the potential sale idea: What are they thinking? Apollo’s acquisition of Digital First Media
At some point this bundle of newspapers will be broken up and sold piece meal.