More Layoffs Likely As Value Of Philadelphia’s News Dailies Plummets

By Steve Tawa

PHILADELPHIA (CBS) — Senior managers who run the Philadelphia Inquirer and Daily News envision cutting even more jobs, to cut payroll and clear the deck for potential new owners.

A document that outlines the terms of a potential sale of the company includes more jobs cuts over the next six months.

A source who has seen the letter of intent, dated March 20th and signed by local businessmen George Norcross and Lewis Katz, puts the purchase price at $60 million.

The consortium of hedge funds and other institutions that now own Philadelphia Media Network bought it for $139 million in 2010, after they outbid a group headed by former publisher Brian Tierney, which paid $515 million in 2006.

No other names were on the document, so it’s unclear who the other “interested parties” are in the local investor group that has the exclusive right to negotiate a possible purchase.

During a recent presentation by senior managers to the potential new owners, a source says the company indicated it would cut another 35 jobs over and above the layoffs and buyouts that recently eliminated 45 positions, mostly newsroom jobs (see related story).

The letter states those job cuts have cost Philadelphia Media Network about $900,000 in severance. But the letter does not get specific on where it would cut over the next six months.

It does have a set-aside provision for an additional $500,000 that would go toward severance for unnamed senior management officials.

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Comments

One Comment

  1. PJ says:

    Good riddance to any and all of these 0bama-loving left wing rags. I hope they all fold.

  2. Freddy Felter says:

    both papers are nothing but slanted news. I get my information from the internet. Get rid of home delivery and the paper may make money. It should go to a online publication only

  3. harry says:

    The inqy and daily news may soon be no longer worth their paper to wrap fish with.

  4. viviana says:

    Fire Claudia Vargas!!!She is the weakest link in that paper she is a disaster.

  5. Wise One says:

    Follow-up – When these types take over a newspaper, readership always plummets. Most blacks don’t buy many papers and don’t support advertisers.

    Correction: nationwide

    1. QWqe00WgRhq says:

      A li b t a r d rag that ba nned me from their site for speaking the truth. Do I care?

  6. Wise One says:

    This is what happens to formerly stalwart dailies nationside when libs, blacks and their ilk take over.

    Case closed.

    1. QWqeee00WgRhq says:

      Joowish libs and their agenda are destroying our media.

  7. PG says:

    Liberal media. No truth told. Sensationalism. Need I say more?

  8. news junkie says:

    Beginning today, please notice that Daily News staff pieces are now being published in the Inquirer. Could this be a signal that the Daily News will be phased out?

  9. So. Philly Walt says:

    BUT, it is proper to require Photo ID to take the SATs!!! We need IDs in our daily routines. It is nor discrimination to require them before voting. Anyone who states there is no extensive, pervasive voter fraud in most big cities is not innocently dumb, but lying to us to win.
    This is not a duplicate comment. You do not like it’s content. SHOW my alleged previous comment.

  10. So. Philly Walt says:

    BUT, it is proper to require Photo ID to take the SATs!!! We need IDs in our daily routines. It is nor discrimination to require them before voting. Anyone who states there is no extensive, pervasive voter fraud in most big cities is not innocently dumb, but lying to us to win .

  11. PhillyRN says:

    Agreed. The snow job they tried to do on photo IDs for voting was just painful. I was embarrassed for them.

  12. So. Philly Walt says:

    Great News!! I hope george Norcross, et al . will clean house and hire professionals who want to seek and publish the facts.

    1. COMNJ says:

      Fair and impartial news from George Norcross?
      You must be joking!!!!

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