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Tribune parent explores asset sales

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By RICHARD MULLINS | The Tampa Tribune

Published: February 23, 2012

TAMPA - The parent company of The Tampa Tribune, Media General Inc. of Richmond, will explore whether to sell some of its newspapers as part of a strategic shift.

No deals are in place, Media General said Wednesday, and the company may not sell any of its 21 daily newspapers or weekly community papers. The company's holdings also include 18 network-affiliated television stations.

Media General said several "third parties" have approached the company recently about potential deals for some newspapers. The timing may be right, the company says, because other local papers looked strong in valuations conducted as part of recent mergers and acquisitions.

The newspaper industry is suffering from declining circulation and revenue, reflected in a December reorganization at the Tribune and website TBO.com that resulted in 165 layoffs.

"As we undertake this exploration process, we cannot say that any particular transaction will or will not take place," said Marshall N. Morton, Media General's president and CEO. "What we can say is that we will consider various options as we work to increase overall cash flow and reduce total debt outstanding over time."

Media General recently reached an agreement with creditors that delays some payments.

Daniel Kurnos, who follows media for New York-based Benchmark, said selling the papers would serve to highlight the company's TV stations, which he said have historically been undervalued, and to "address the burgeoning debt problem."

Newspapers have become inexpensive enough for wealthy individuals to buy, said Tim McGuire, a former editor and now journalism professor who studies the industry at Arizona State University.

"I think more and more you're going to see newspapers sold like sports teams," he said. "These are involved community members who want to buy them, keep them running and have a major voice of their own."

rmullins@tampatrib.com (813) 259-7919 Twitter: @DailyDeadline

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