News Corp has sold its local newspaper group to an affiliate of Fortress Investment Group. The group will be managed by GateHouse Media, a publisher of local newspapers and online media.
Robert Thomson, CEO of News Corp, said that the newspapers didn’t fit the strategy of the newspaper company, which formed from the split earlier this year of News Corp. into separate print and entertainment businesses.
The Dow Jones Local Media Group publishes eight daily and 15 weekly newspapers, including the Times Herald-Record in Middletown, N.Y.; Cape Cod Times in Hyannis, Mass.; and The Record in Stockton, Calif. The buyer was identified only as an affiliate of Fortress Investment Group.
Here's the full release:
NEW YORK--(BUSINESS WIRE)-- News Corp (NASDAQ: NWS, NWSA; Temp. ASX tickers: NNC, NNCLV) announced today that it has sold the Dow Jones Local Media Group, which operates 33 publications, including 8 daily and 15 weekly newspapers, to an affiliate of Fortress Investment Group LLC.
The Dow Jones Local Media Group daily newspaper franchises include the Times Herald-Record (Middletown, N.Y.); Cape Cod Times (Hyannis, Mass.); The Record (Stockton, Calif.); The Standard-Times (New Bedford, Mass.); The Pocono Record (Stroudsburg, Penn.); The Herald (Portsmouth, N.H.); The Mail Tribune (Medford, Ore.), and The Daily Tidings (Ashland, Ore.). In addition to daily and weekly newspapers, the Dow Jones Local Media Group operates other print and online community media, including web sites, magazines as well as news and advertising niche publications.
"These newspapers share a strong tradition of service in their communities and a highly talented staff,” said Robert Thomson, Chief Executive of News Corp. “We are confident that the papers will prosper under the new owners, but they were not strategically consistent with the emerging portfolio of the new News."
The Dow Jones Local Media Group operations will be managed by GateHouse Media, one of the largest publishers of locally based print and online media in the United States with a portfolio of products that includes over 400 community publications and approximately 350 related websites.
Waller Capital Partners, a leading independent investment bank focused on the telecommunications, media and technology sectors, advised Dow Jones on the sale of the Local Media Group.
Financial terms were not disclosed.