DJ Has Deal To Sell Six Community Papers For $282.5 Million

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Dow Jones’s decision to sell some of its Ottaway community papers is paying off … Community Newspaper Holding, Inc. has agreed to buy the six papers for $282.5 million — $276.1 million in cash — subject to a “working capital adjustment;” the after-tax amount should be about $268 million. The planned purpose for the money: paying off the $160 million purchase of Reuters’ 50-percent Factiva stake. DJ is getting more than 11 times EBITDA for the papers ($25 million), a detail CEO Rizh Zannino cites in the announcement along with the explanation of how the Factiva sale will cost about 4 times EBITDA as an example of how DJ is “efficiently redeploying capital from print to faster growing digital publishing.” Zannino: “This sale and the pending acquisition of Factiva are the latest examples of our commitment to transform Dow Jones from a company heavily dependent on print publishing revenue to a more diversified company capable of meeting the needs of its customers across all consumer and enterprise media channels, whether print, online, mobile or otherwise.”
The papers being sold: The News-Times of Danbury, Conn.; The Daily Star of Oneonta, N.Y.; the Press-Republican of Plattsburgh, N.Y.; the Santa Cruz Sentinel; The Daily Item of Sunbury, Pa.; and the Traverse City Record-Eagle (Traverse City, Mich.).
Related: <a href="http://www.paidcontent.org/entry/dj-acquiring-reuters-interest-in-factiva-for-160-million-will-use-full-cont/" title="DJ Acquiring Reuters

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