Media General, Inc.—owner of numerous television stations and newspapers, including The Daily Progress and the Richmond Times-Dispatch—announced yesterday that it was "exploring the sale of its newspaper operations."
“Media General, Inc. (NYSE: MEG) today announced that it is exploring the potential sale of newspaper operations. Media General said it has received inquiries from several third parties regarding the potential purchase of certain of its print assets. The company wishes to ensure that any divestiture it may make maximizes shareholder value,” the company’s press release said.
Media General, Inc. reported a loss of $3.3 million on $168 million of total revenue in the fourth quarter of 2011, down about 12 percent from the fourth quarter of 2010. The decline resulted in major cuts at one of its papers, The Tampa Tribune, which cut 165 positions in December.
The release indicated that the company was looking at the sale of its print assets as a way to offset its debt:
“Media General has indicated in recent months that it will consider asset sales at valuations that reflect the strength of its properties as a means of reducing total debt outstanding over time,” said the release.
The company announced that there was no set timetable for the potential sale of its print assets and said the “investment banking advisory firm Peter J. Solomon Company is assisting Media General with the strategic evaluation process.”
Media General, Inc. operates 18 network-affiliated television stations and 21 daily newspapers in five market segments, including eight Southern states.
