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Worker Friendly' Buyout of Knight Ridder Newspapers Under Consideration
Washington, D.C., December 22 – One of the largest unions representing workers in the newspaper industry, the Newspaper Guild-Communications Workers of America, today announced a response to the possible sale of the Knight Ridder newspaper chain. Newspaper Guild President Linda Foley has retained two advisory firms, Duff & Phelps Securities, LLC, of Chicago and Ownership Associates, Inc. of Cambridge, MA, that will work with the union to attempt a "worker friendly" buyout of certain properties of the Knight Ridder newspaper chain. On November 14, the Knight Ridder chain formally announced that it was exploring "strategic alternatives" that include the sale of all of its 32 newspaper properties. A first round of offers for the second largest chain in the nation was received by the firm's investment bank on December 9.
"Standing still is not an option," Foley remarked. "Each of the 8 properties our advisory team has identified is profitable. We think there are solid business opportunities out there. We are going to go after those properties and we are going to attempt to persuade others in labor, management and the investment community to join us. We have formally requested that Knight Ridder open the process to include our bid."
The newspaper properties specified by Duff & Phelps Managing Director Richard May and Ownership Associates, Inc. President Christopher Mackin include the San Jose Mercury News, the Philadelphia Inquirer and Daily News, the St. Paul Pioneer Press, the Akron Beacon Journal, the Duluth News Tribune, the Lexington Herald-Leader, the Monterey Herald and the Grand Forks Herald.
"There is a national network of 'worker friendly' private equity firms that has emerged over the past two decades," Richard May said. "We anticipate that a combination of private equity capital, management capital and employee capital will make possible the purchase of a select number of these newspaper properties. We are also open to exploring joint bids with other strategic and financial partners that have expressed similar interest in the Knight Ridder chain."
A new acquisition corporation, ValuePlus Media Corporation (VMC) will be formed according to advisor Christopher Mackin. The first order of business for VMC will be the naming of a senior management team. This team will decide upon the number of media properties to be acquired, the price to be paid for those properties and the finalization of a corporate business plan. "Fortunately, there is no shortage of talent to draw upon from the newspaper industry," Mackin commented. "We are in discussions with industry leaders that have established records in both digital and print media."
Regular updates will be posted at www.knightridderwatch.org
The Newspaper Guild-CWA represents 35,000 workers in the United States, Canada and Puerto Rico, and CWA overall represents 700,000 workers in telecom, IT, journalism, broadcasting, manufacturing, airlines and other sectors.
"Standing still is not an option," Foley remarked. "Each of the 8 properties our advisory team has identified is profitable. We think there are solid business opportunities out there. We are going to go after those properties and we are going to attempt to persuade others in labor, management and the investment community to join us. We have formally requested that Knight Ridder open the process to include our bid."
The newspaper properties specified by Duff & Phelps Managing Director Richard May and Ownership Associates, Inc. President Christopher Mackin include the San Jose Mercury News, the Philadelphia Inquirer and Daily News, the St. Paul Pioneer Press, the Akron Beacon Journal, the Duluth News Tribune, the Lexington Herald-Leader, the Monterey Herald and the Grand Forks Herald.
"There is a national network of 'worker friendly' private equity firms that has emerged over the past two decades," Richard May said. "We anticipate that a combination of private equity capital, management capital and employee capital will make possible the purchase of a select number of these newspaper properties. We are also open to exploring joint bids with other strategic and financial partners that have expressed similar interest in the Knight Ridder chain."
A new acquisition corporation, ValuePlus Media Corporation (VMC) will be formed according to advisor Christopher Mackin. The first order of business for VMC will be the naming of a senior management team. This team will decide upon the number of media properties to be acquired, the price to be paid for those properties and the finalization of a corporate business plan. "Fortunately, there is no shortage of talent to draw upon from the newspaper industry," Mackin commented. "We are in discussions with industry leaders that have established records in both digital and print media."
Regular updates will be posted at www.knightridderwatch.org
The Newspaper Guild-CWA represents 35,000 workers in the United States, Canada and Puerto Rico, and CWA overall represents 700,000 workers in telecom, IT, journalism, broadcasting, manufacturing, airlines and other sectors.