The Providence Journal’s parent company just got 13% smallerOctober 10th, 2013 at 12:16 pm by Ted Nesi under Nesi's Notes, On the Main Site
And then there were two.
The Providence Journal’s Dallas-based parent company, A.H. Belo, announced Thursday the sale of one of its three newspaper divisions: The Press Enterprise of Riverside, Calif., acquired for $27.3 million (including real estate) by Freedom Communications Holdings, owner of the Orange County Register.
The possibility has been floated for a while by A.H. Belo investors, who’ve noted how many different companies are currently operating in the Southern California newspaper market. Meanwhile, Freedom chief Aaron Kushner has aggressively doubled-down on the print side of the newspaper business at the Register.
The sale leaves A.H. Belo owning only two major newspapers: its flagship Dallas Morning News and The Providence Journal here in Rhode Island. The Journal is a much smaller operation, contributing only 21% of A.H. Belo revenue during the first half of 2013; Dallas provided 66% and Riverside 13%. Here’s a chart:
There was no mention of The Journal in A.H. Belo’s press release about the sale, though A.H. Belo CEO Jim Moroney said the company would use the $27 million in proceeds “to continue to diversify its revenue streams and increase shareholder returns in the future.” The Journal’s union is currently bracing for more layoffs.
• Related: No reason for Belo to sell Projo with price at $51 million (Dec. 28, 2010)