Newspaper Guild President Linda Foley and Secretary-Treasurer Bernie Lunzer have retained two advisory firms, Duff & Phelps, Inc. 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 Nov. 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 were received by the firm’s investment bank on Dec. 9. 

“Standing still is not an option,” Foley remarked. “Each of the eight 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 Tribune.

“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 adviser 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.

For more information or to arrange an interview, contact: