PHILADELPHIA (AP) — A group of powerful business leaders announced Monday they have closed a deal to purchase Philadelphia's two largest newspapers from hedge funds for approximately $55 million, a fraction of what investors paid for them in 2006.
The Philadelphia Inquirer was a Knight newspaper from 1969-2006.
The buyers, who include cable TV mogul H.F. "Gerry" Lenfest, powerful New Jersey Democrat George Norcross III and former New Jersey Nets owner Lewis Katz, said they plan to keep the newspapers' tradition of strong journalism alive in the digital age.
They had an exclusive option to bid for Philadelphia Media Network, which also operates the Philly.com website and a weekly sports publication.
The purchase price — which includes up to $10 million from investors to fund operations — is less than 15 percent of the $515 million paid by a group of investors in 2006, and far less than the $139 million creditors paid at a 2010 bankruptcy auction.
"These newspapers have an historic tradition of outstanding journalism in our city and we want to preserve that tradition and marry it to the exciting digital opportunities that are revolution the news business," Katz said in a statement released before the scheduled news conference Monday morning.
The buyers established a new company, Interstate General Media LLC, to operate Philadelphia Media Network.
The sale comes as Philadelphia Media Network has announced plans to cut 45 positions this month, including 40 in the newsroom. Last year, the newsrooms lost 20 jobs.
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The Philadelphia Inquirer was a Knight newspaper from 1969-2006.
The buyers, who include cable TV mogul H.F. "Gerry" Lenfest, powerful New Jersey Democrat George Norcross III and former New Jersey Nets owner Lewis Katz, said they plan to keep the newspapers' tradition of strong journalism alive in the digital age.
They had an exclusive option to bid for Philadelphia Media Network, which also operates the Philly.com website and a weekly sports publication.
The purchase price — which includes up to $10 million from investors to fund operations — is less than 15 percent of the $515 million paid by a group of investors in 2006, and far less than the $139 million creditors paid at a 2010 bankruptcy auction.
"These newspapers have an historic tradition of outstanding journalism in our city and we want to preserve that tradition and marry it to the exciting digital opportunities that are revolution the news business," Katz said in a statement released before the scheduled news conference Monday morning.
The buyers established a new company, Interstate General Media LLC, to operate Philadelphia Media Network.
The sale comes as Philadelphia Media Network has announced plans to cut 45 positions this month, including 40 in the newsroom. Last year, the newsrooms lost 20 jobs.
See story
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