Freedom Newspapers Bids for 31 Suburban Weeklies
Freedom Newspapers Inc., owner of the Orange County Register, is among the bidders for a group of suburban weekly newspapers in Orange and Los Angeles counties that were put up for sale last month by Media General Inc.
The chain, Golden West Publishing Inc., includes nine papers that are part of South Orange County News in Mission Viejo, as well as 22 weeklies in northern Orange County and the San Gabriel Valley that are part of City of Industry-based Highlander Publications.
Former Chicago Sun-Times publisher Robert E. Page, who sources said has finalized his acquisition of the Orange Coast Daily Pilot newspaper, is also believed to be among the bidders for the Golden West chain.
Times Mirror Co., which owns The Times, is considering whether to make a bid.
R. David Threshie, publisher of the Register, confirmed Friday that Freedom Newspapers had made an offer for the Golden West papers. He said it was premature to comment on how the publications would fit into the company’s strategy.
The weekly newspapers have a combined circulation of 487,000, and nearly all of them are distributed free to community residents. Media General has said it wants to sell Golden West as a unit, but the South Orange County News properties--such as the Saddleback Valley News--are considered particularly attractive because they are in affluent and fast-growing areas.
Media General Inc. of Richmond, Va., put the papers up for sale Oct. 17, stating that they were too remote, both geographically and strategically, from the company’s core daily newspaper operations in the East. Media General could not be reached for comment on the bidding.
Ron Redfern, chief executive of Golden West, said several companies have expressed interest in the papers and that there now appear to be three or four serious candidates.
Redfern declined to identify the candidates, nor would he discuss what kind of price the papers might bring. But he said the consideration of the bids involved factors other than price, such as terms of the offer and antitrust concerns.
An acquisition of Golden West by Freedom Newspapers or Times Mirror could be subject to antitrust review because of the strong market presence of the Register and The Times.
The interest of Freedom and Times Mirror in the weekly chain appears to be an extension of the fierce battle between the Register and The Times for Orange County readers and advertising dollars. A number of metropolitan newspapers, including the Chicago Sun-Times, have acquired suburban weeklies in recent years.
Media General had initially set a Nov. 17 deadline for all bids, which are being handled by Lee Dirks & Associates, a newspaper brokerage firm in Birmingham, Mich. But the deadline was apparently extended to allow additional offers. An official at Lee Dirks declined to comment on the sale.
The Golden West papers have annual revenues of about $15 million, and analysts say such publications normally sell for prices equivalent to their revenues. But the high level of interest could push up the price for Golden West.
Earlier this month, Adams Communications Inc., owner of the Orange Coast Daily Pilot, confirmed that it was negotiating to sell the paper to Page, and a source said this week that the deal had been completed.
Page has not returned phone calls made to his Boston-based company, Page Media.
Page is also believed to be pursuing the purchase of the Glendale News-Press.
