Now this is getting interesting! I sure would like to see some sort of unique staff-ownership thing emerge, like the Green Bay Packers or something.
Wouldn't that just be a radical idea? Have reporters, editors, photojournalists, the people who care most deeply about journalism, OWN their own journalistic venture?
Gee, that sounds an awful lot like... BLOGS! Hey, if you can't join 'em, BEAT 'EM!
President Clinton Emerges in Group Bidding for Philadelphia Inquirer
BY JOSH GERSTEIN - Staff Reporter of the Sun
March 29, 2006
URL: http://www.nysun.com/article/29968A private investment group whose board of directors includes President Clinton made a bid yesterday to take over a dozen daily newspapers owned by Knight Ridder, including the Philadelphia Inquirer.
Mr. Clinton serves as a senior adviser to the Yucaipa Companies, a Los Angeles-based investment firm that has joined with a journalists' union, the Newspaper Guild, to seek control of the 12 newspapers and gradually transfer ownership to the news outlets' employees.
"The Yucaipa Companies are putting in a bid today for the 12," a spokeswoman for the union, Candice Johnson, said in an interview. She declined to say how much the union-backed group is offering. "We think the bid will be a very strong bid," she said.
The papers on the auction block include both of Philadelphia's leading newspapers, the Inquirer and the Daily News, as well as the St. Paul Pioneer Press and the San Jose Mercury News. Industry analysts have estimated that the dozen newspapers will fetch between $1.4 billion and $2 billion.
Earlier this month, the McClatchy Company agreed to buy the Knight Ridder chain for $6.5 billion. Mc-Clatchy, which is based in Sacramento, surprised many observers by immediately announcing plans to shed a dozen of Knight Ridder's 29 newspapers. McClatchy's CEO, Gary Pruitt, said most of the papers being sold are in slow growing markets.
[You know, those markets where the 20% profits aren't INCREASING TO 30% fast enough. Stockholders (stakeholders, heh) hate when that happens. Gotta get rid of those. Just dead weight and all that.]
The Yucaipa-led bidding group has been locked in a dispute with the firms selling the newspapers over access to confidential financial information about the papers' performance. In a statement last week, the president of the Newspaper Guild, Linda Foley, complained about unfair treatment and threatened to involve unnamed powerful allies if McClatchy refused to turn over financial data given to other bidders.
[Is this business standard operating procedures? I mean, if you're buying something, don't you get to LOOK AT what you're buying? Sounds like somebody claiming to have a right to sell a pig in a poke. Imagine if you had to sign for your mortgage without bringing in your own home inspector. Sheesh. ]
"I am prepared to recruit the strength of friends of the labor movement in the investment community as well as opinion leaders in the various communities where my members practice their profession to assist us in the process of insuring that our bid is treated fairly," Ms. Foley said.
McClatchy has denied any favoritism.
A spokesman for Mr. Clinton, who delivered a speech in London yesterday at a conference on globalization, said the former president has not played a role in the proposed newspaper acquisition.
[...]
During his presidency, Mr. Clinton rarely visited Los Angeles without stopping at the home of the supermarket magnate who founded Yucaipa, Ronald Burkle. In his memoir, the former president described Mr. Burkle as "one of my best friends."
In 2002, Mr. Burkle's investor group announced that Mr. Clinton had signed on as a senior adviser to Yucaipa American Funds and Yucaipa Corporate Initiatives Fund. Mr. Burkle, who is known for orchestrating leveraged buyouts at companies that have suffered from union strife, said in a statement that the funds were pursuing socially conscious investments in low-income neighborhoods.
Senator Clinton's financial disclosure forms indicate that Mr. Clinton was a partner in Yucaipa Global Opportunities Fund I and received "guaranteed payments" of more than $1,000 in 2003 and 2004. The forms do not require disclosure of the exact amounts.
[...]
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