Dow Jones & Co and Journal Register Co separately said on Monday that each planned to explore the sale of some local newspapers, reflecting the shake-up underway in the publishing industry.
Dow Jones & Co, publisher of The Wall Street Journal, said it would evaluate options for community newspapers in six of markets, including New York, California, Pennsylvania, Michigan and Connecticut. Those options include a sale or possible swap for other newspapers. The company said the purpose of the potential transactions is to raise cash to repay debt, to invest in its existing businesses, and to use $155 million in capital loss tax carry-forwards before they expire at the end of the year.
Journal Register, meanwhile, said it is exploring the sale of its Massachusetts and Rhode Island newspapers as its aims to invest in its online properties. The company has engaged Dirks, Van Essen & Murray as its financial adviser. The newspapers being considered are in its New England cluster of properties and generated revenue of about $39.9 million and operating cash flow of about $8.9 million for the 12-month period ended June 25.
The announcement that the publishers were looking into possible deals for some newspapers highlights the shifts taking place in an industry facing declining circulation, stiff competition for advertising money and depressed stock prices.
One major newspaper publisher, Knight-Ridder, was sold last year after shareholders demanded changes at the company, while another, Tribune Co has been locked in a boardroom battle over its future.
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