The creditors paid $139 million for the company after forcing the sale when local investors who paid $515 million for the company in 2006 missed debt payments in early 2009. The creditors have since sold the iconic newspaper building and plan to move staff to much smaller space in a long-vacant department store this year.
Some editorial functions will be merged, but the company wants to maintain separate brands for the broadsheet Inquirer and tabloid Daily News, along with the website and a new weekend publication called SportsWeek, according to Bill Ross, executive director of the local newspaper guild.
In a memo Friday, Publisher Greg Osberg urged staff to stay focused on their work in 2012.
"We will not comment on rumors as we continually evaluate the operations and prospects for the company to determine the best course of action for our shareholders and the company," he wrote.Lawyer Larry McMichael, who represented the former owners during their bitter bankruptcy fight with lenders, said he's gotten a few calls this week from local parties. He could not disclose specifics. "There is interest in the community about buying the papers and re-establishing local ownership," McMichael said. Perelman noted that The New York Times reported a 12 percent quarterly drop in earnings Friday. He said he believes that newspapers are "cutting their own throats" by posting their work on the Internet. The Times and other news companies now charge for some online content, while Philadelphia Media Network charges for digital products for mobile phones and other devices. "It's a crazy situation," Perelman said. "There's a long drink between 'interested' (in the Philadelphia company) and 'buying it.'"
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV