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The
City of Brotherly Love
was
rocked by a major
media deal today when the Philadelphia
Media Network, publishers of Philly.com,
the Philadelphia Inquirer and The
Daily News was sold to a group of
powerful local business and political leaders
for $55 million. This comes just two
years after the company had been purchased
for $138 million. A big ouch for
the sellers.
The
New York Times reports that the
new ownership group includes Democratic power
broker George E. Norcross III, parking
lot magnate Lewis Katz, Joseph
Buckelew, who owns a large South Jersey
insurance brokerage firm, philanthropist H.F.
Lenfest and William P. Hankowsky, a
real estate investor and chief executive of Liberty
Property Trust.
Philly.com
will likely turn out to be the most valuable
asset in the portfolio as the newspapers
continue to be plagued by the decline that has
affected print publications across thecountry
in
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Philadelphia's
Love Park
Love
Park image from Bigstock
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recent years.
In its latest round of job cuts The inquirer
just laid off another 45 employees last
month and announced plans to drop 35 more
over the next six months.
Still,
the new investors think they can right the
ship. Norcross told the New York Times
“This is first and foremost a business
decision. Our intention is to own the business
and find new ways to make the business
successful.” The new owners will keep Greg
Osberg on as the company’s publisher and
chief executive. Osberg reportedly helped
assemble the new ownership group.
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