Cox to sell all but 3 newspapers
By Leah McBride Mensching, Thursday 14 August 2008 at 19:06 :: Media Ownership :: #2104 :: rss
Atlanta-based media company Cox Enterprises will sell dozens of its daily and weekly newspapers, retaining ownership of just three flagship newspapers, in order to pay down debt and make new investments, The Atlanta Journal-Constitution reported Wednesday.
Cox will continue owning newspapers in West Palm Beach, Fla.; Dayton, Ohio; and Atlanta, Ga., including The Atlanta Journal-Constitution. It will sell newspapers in Colorado, North Carolina and Texas, including its largest newspaper, the Austin American-Statesman, which has a daily circulation of 150,000.
The company will also sell its direct mail advertising division Valpak, which is sent to homes across the United States, according to The Journal-Constitution. Cox officials did not disclose the price tag it is putting on any of the properties.
The sales are due to low revenues and declining newspaper values in the United States. Just 20 percent of Cox's revenues currently come from its newspaper, TV and radio properties, while 80 percent are from its cable television and auto auction businesses. Cox Communications is the third-largest cable provider in the United States, while Manheim Inc. is one of the biggest used car exchanges in the world. The company's revenues currently are at US$15 billion, with 83,000 employees, The Journal-Constitution reported.
Although the company is based on its newspaper division, founded in 1898, the selling off of most its newspapers are necessary to “maintain our strong and stable financial performance,” said Jim Kennedy, CEO and chairman of Cox.
“Local newspapers play a valuable role in the communities they serve, and we are confident that the publications we are selling and those we continue to operate will continue to provide timely, valuable and trustworthy news,” he told The Journal-Constitution.
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