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Investors Snapping Up Daily Papers

Real estate a major factor in sale of 71 papers last year

By Rob Quinn,  Newser Staff

Posted Jan 30, 2012 3:23 AM CST
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(Newser) – Despite plunging revenue and circulation figures, plenty of people in America are still buying daily newspapers—lock, stock, and valuable headquarters. Some 71 daily papers were sold last year, and while some investors see buying a paper as a civic duty, others view it as a way to turn a quick profit, especially since newspapers tend to own large buildings in prime downtown locations, the New York Times finds.

"A lot of these companies are acquiring newspapers and looking for underperforming assets,” a media industry analyst says. “They’ll acquire the local newspapers and they’ll go in and slash operations to where these newspapers are profitable. It’s kind of like flipping houses.” The chief of a firm specializing in newspaper mergers and acquisitions says that while real estate plays a role, content also matters. "You’re buying the entire organization, which is the backbone to be able to produce a digital product," he says.

The Philadelphia Inquirer and Philadelphia Daily News building, left, was sold to a developer last year.
The Philadelphia Inquirer and Philadelphia Daily News building, left, was sold to a developer last year.   (AP Photo/Matt Rourke)
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COMMENTS
Showing 3 of 4 comments
irisht58
Jan 30, 2012 8:21 AM CST
I'm always amazed at the number of people who think the newspaper in their communities does not serve a purpose. Not only does it keep a record of your community history, it also contains the legals for your community and county, along with so many other important news items. It kills me when they say I don't need to subscribe ... I can get my news for free on the Internet. My question is who do you think brings you your local news? If all newspapers shut down ... where will the aggregators, including Newser, get their content?
Winston_Smith
Jan 30, 2012 5:34 AM CST
Print newspapers have a future, but not as a significant source of news.  I continue to subscribe to my "local newspaper", which actually has little local news, because the restaurant and store coupons in it are worth more than the cost of subscribing (about $1/week).   Some of the magazine-style features which take up most of the front page are actually pretty good, though, as are the funnies and the crossword puzzle.  
Rammrodd
Jan 30, 2012 4:43 AM CST
Go green. Save a tree. Shut down a useless newspaper.
Media • Money

 
newspaper • real estate • mergers and acquisitions • online newspapers • newspaper industry

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