Al Diamon
Who are the Guys Buying Blethen?
(page 1 of 2)
A group called Maine Media Investments has signed a letter of intent to buy the Blethen Maine Newspapers. Blethen announced the agreement in a news release on July 30, saying MMI had been granted a limited exclusive time period in which to work out a final deal to buy the Portland Press Herald, Kennebec Journal, Morning Sentinel and other Blethen properties in the state. Neither the length of that time period nor the sale price were disclosed.
The people behind MMI are former U.S. Sen. William Cohen, secretary of defense during the Clinton administration and the head of a Washington-based defense consulting and lobbying firm; Robert Baldacci, brother of Maine Gov. John Baldacci and owner of the Baldacci Group, a Portland real estate development company; Michael Liberty, another Portland developer; and Richard L. Connors, editor and publisher of the Wilkes-Barre Times Leader in Pennsylvania and president of Wilkes-Barre Publishing Co. which owns several other Keystone State publications.
If the sale becomes final, Connors is expected to become the chief operating officer of the Maine newspapers. He’s a Bangor native with more than 40 years experience in the newspaper industry. Connors owns a summer camp near Bangor.
Also expected to be involved in the newspaper’s management in some yet-to-be-announced capacity is Kevin Cohen, the senator’s son and partner in DoubleMan Media, described on its Web site as “a global media consulting, advisory, and service firm.” Kevin Cohen, a former executive with Turner Broadcasting, is profiled as “a recognized leader in new media, with a long career that includes successful international business launches and revenue generation across multiple platforms.”
Baldacci most recently made headlines as one of the leaders of a Portsmouth, N.H.-based development group that included former U.S. Sen. George Mitchell and billionaire Tom Walsh, which unsuccessfully sought the rights to build a hotel and other projects on the Maine State Pier on the Portland waterfront.
Posted on Thursday, July 31, 2008 in Permalink
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Reader Comments:
Here's an update: I'm informed by an e-mail from Dennis Bailey, spokesman for MMI, that the SEC lawsuit against Liberty was settled about a year ago. According to Bailey, Liberty is prohibited from discussing the terms of the settlement, although Liberty did tell him, " it came to a satisfactory resolution for both sides." Although Liberty has been involved in several lawsuits in the past, he's currently litigation-free, according to Bailey.
As for the potential new owners' possible conflicts of interest, Bailey said, "I understand the potential for conflicts, but if we're going to have local ownership of the newspaper, the only people with the wherewithal to buy and operate the paper would undoubtedly have potential conflicts, whoever they are, and I emphasize potential. As I said, I think the fact that under the purchase plan, if all goes well, the employees will have ownership rights and that could guard against conflicts. We've also discussed with the union about have having an ombudsman that would vet complaints or conflicts."
Al Diamon
"But, something happened along the way: Connor became emotionally involved in the paper. Again. Around the time the $65 million deal between the Wilkes-Barre Publishing Co. and The McClatchy Co. was announced, Connor decided to return as editor and publisher of the paper. On Tuesday, Connor announced he is replacing Matt Golas as top editor. Last week, Connor asked former Publisher Patrick McHugh to step down.
Brett Shoemaker, who headed the Times Leader production department, also left the paper Tuesday at Connor's request. "I've always known that wherever I worked I had to be both editor and publisher," Connor said. "That's not changed over the last 30 or 40 years of doing this. That's what I know..."
COPYRIGHT 2006 The Times Leader Byline: Renita Fennick
Perhaps a savvy reporter could call the SEC and ask for an update on the status of the case that named Liberty........
Bailey's lying to you, Mutt. There's no settlement. Spin, Spun, Sputtum.
Fascinating how Bailey shows up in this mix. Back when Bailey was a PPH reporter investigating Liberty's questionable development deals, Liberty threatened to sue the newspaper.
Here's a correction and clarification:
First, I misspelled Richard Connor's name by adding an extra "s." No excuse for that.
Second, the claim by Michael Liberty (via Dennis Bailey) that the SEC suit had been settled is only partly true. Unfortunately, the part that isn't true is the part concerning Liberty. The suit has been settled as regards the other defendants. But Liberty's case is still pending and more motions in the matter are due in mid-September.
Here's a link for those who want more information on the legal problems of one of the guys who may soon be part-owner of Maine's biggest daily newspaper:
http://www.sec.gov/litigation/litreleases/lr19601.htm
Al Diamon
Will McClatchy still be involved? Connor apparently has a business relationship with them at Wilkes-Barre, according to comment above. Is the Maine group only buying the Blethen family's share?