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That was quick: Gatehouse sells Hunt. (W.Va) Herald-Dispatch

Discussion in 'Journalism topics only' started by Evil ... Thy name is Orville Redenbacher!!, Jun 29, 2007.

  1. I post this because Gatehouse just bought the paper in April.
    Isn't this Champion's first newspaper?

    Champion to buy Herald-Dispatch
    HUNTINGTON, W.Va. (AP) ä Gatehouse Media is selling The Herald-Dispatch to Champion Industries, Inc., for $77 million.
    The companies announced the deal announced Thursday. It is expected to close before the end of August, Gatehouse Media said.
    Fairmont, N.Y.-based Gatehouse, which has 87 daily publications, acquired The Herald-Dispatch from Gannett Co. in April, along with three other newspapers.
    The Huntington newspaper has a daily circulation of about 28,000 and a Sunday circulation of 33,000.
    Gatehouse Chief Executive Officer Mike Reed said the company did not see The Herald-Dispatch as a good fit either strategically or geographically.
    "It was always our intention when we recently acquired several properties from Gannett to dispose of the Huntington Herald Dispatch, and I am delighted to announce the sale of this venerable publication to Champion Industries, a company with a strong presence and history in the local market," Reed said in a news release.
    Huntington-based Champion Industries, a commercial printing and business furniture supplier, operates businesses in Indiana, Kentucky, Louisiana, New Jersey, North Carolina, Ohio, Pennsylvania, New York, Tennessee and West Virginia.
    "The Herald-Dispatch is a premier institution in West Virginia and the entire tri-state area. We believe this opportunity will generate numerous expansion and growth opportunities," Marshall T. Reynolds, Champion's chairman and chief executive officer, said in a news release.
    Reynolds said Champion believes a locally owned newspaper will provide benefits to both the community and shareholders.
    The sale is subject to regulatory approval.
    Gatehouseás shares fell 53 cents, or 2.77 percent, to $18.57 on Thursday. Championás shares rose 7 cents, or 0.99 percent, to $7.15.
  2. Frank_Ridgeway

    Frank_Ridgeway Well-Known Member

    I thought that seemed like a very high price for a newspaper that size. My recollection is a decade ago, the average formula for a sale price was 10 times yearly net revenue or one times yearly gross or $1,000 per subscriber, more if the paper was in a growing area, less if it was in a declining area. The really odd thing was that when I Googled to try to check my memory, I stumbled upon this Time magazine article from 1953 that said, "newspapers in general are making fat profits, anywhere from 6% to 15% after taxes." If only we were still willing to settle for what used to be "fat profits," we could spend the money to make the product more appealing.,9171,818841,00.html
  3. Years ago when I worked for Thompson, I was told our paper's average profit margin was about 21%.
  4. KP

    KP Active Member

    Good find, Frank.
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