Al Diamon
Blethen Sale May Be Close
It looks like a done deal: According to two informed sources in the newspaper industry, Maine Media Investments – the company formed by former U.S. Sen. William Cohen, developer Robert Baldacci (brother of Gov. John Baldacci), developer and film producer Michael Liberty, and Pennsylvania newspaper publisher/editor Richard Connor – is on the verge of buying the Blethen Maine Newspapers. One source said the sale could be completed by the end of the month. The other said it might take a little longer, but should happen well before the end of the year.
If the reports are correct, MMI would gain control of the Portland Press Herald, the Kennebec Journal in Augusta, the Morning Sentinel in Waterville, the MaineToday.com Web site and considerable real estate. According to one of the sources, much of that real estate would be sold off quickly by the new owners, including the Press Herald’s building on Congress Street in Portland. The paper’s news and advertising operations would be consolidated at its South Portland printing plant.
Dennis Bailey, spokesman for MMI, did not return repeated phone calls seeking comment.
Tom Bell, president of the Newspaper Guild, the largest union at Blethen, refused to comment on a possible purchase of the company, but did confirm in an e-mail that the Guild was negotiating with MMI on changes in its contract that might reduce costs for the new owners. “We're still talking with them and things are proceeding well,” Bell said.
“There is no agreement yet.”
MMI announced its interest in buying the Blethen papers in July, saying it had an exclusive agreement to discuss a sale. In late August, both parties ended that exclusive arrangement, saying they could not work out all the details in the limited time – 60 to 90 days – it afforded.
There was considerable speculation at that time that MMI’s interest in the papers was fading, due to the large debt load they carried, although Bailey insisted Cohen and company still wanted to make the deal work.
In September, representatives of the Irving companies toured the Portland facilities, prompting speculation the privately held Canadian conglomerate might be interested in purchasing the Maine papers.
According to published reports, Seattle-based Blethen bought the former Guy Gannett papers in 1998 for about $230 million.
Much of that money was borrowed, and Blethen still owes more than $100 million. Estimates of the company’s value today have ranged from $75 million to as little as $25 million. MMI had previously said it might be willing to assume some of Blethen’s debt as part of a purchase deal.
She doesn’t look like a journalist: During the visit to Maine last weekend by Todd Palin, husband of the Republican vice-presidential candidate, reporters weren’t allowed to ask questions.
With one exception.
Cindy Michaels, anchor/reporter at WVII-TV in Bangor, was given brief access to the “First Dude,” apparently because Michaels looks something like Sarah Palin.
How did Michaels take advantage of this opportunity? Did she get Palin to comment on the “Trooper-gate” investigation in Alaska? Did she ask him about his membership in a secessionist group? Teen pregnancy? World peace?
Nope.
Michaels asked Palin for an autograph.
Then she followed up. Here’s the dialogue, courtesy of the microphone of Mal Leary of Capitol News Service:
Michaels: “Did you read the story? I was getting hate mail for looking like your wife.”
Palin: “Really? Oh, you’re kidding me.”
Michaels: “Yes.”
Palin: “She loves this kind of stuff.”
Michaels: “You’ve got to tell her that I would love to meet her. And, oh, she’s great, she’s great.”
Al Diamon can be e-mailed at aldiamon@herniahill.net.
Posted on Wednesday, October 15, 2008 in Permalink
Views expressed in this blog belong to the author and do not necessarily reflect either Down East's editorial stance or the views of Down East Enterprise. We ask that comments be civil; anyone who refuses to self edit runs the risk of being banned from commenting on Down East.com content. Further, please limit material cited from other publications to fewer than 75 words and a link; anything more riles copyright attorneys.
Reader Comments:
Here's an update. At 3:45 p.m. on Oct. 15, I spoke by phone with Dennis Bailey, spokesman for MMI. He confirmed that officials from MMI and Blethen met last night, that there was "progress" in the talks, and that it was possible a deal could be completed by the end of the month. Bailey said most of the remaining issues concern financing, but refused to elaborate. "There are still a lot of hoops to jump through," he said. He declined further comment.
Al Diamon
Is the Dennis Bailey who is the spokesman for MMI the same Dennis Bailey who is the executive director of CasinosNo?
If so, does that seem like something that should be disclosed in stories about the casino fight and/or the newspaper sale whenever Bailey is quoted?
Yes, it's the same person. If Bailey stays on as spokesman for MMI after it buys Blethen, his involvement in issues covered by the newspaper ought to be disclosed. Until then, I don't see any reason to do so.
Keep in mind that several of the potential new owners of the Press Herald, etc. will likely be involved in newsworthy events, as well. Disclosures could fill a significant part of the news hole if MMI takes over.
Al Diamon
Al--Nice story. One small fix: Crosscut has reported that the Seattle Times Co. "borrowed" $230 million to buy the Blethen Maine chain. That information comes from the Times Co.'s internal documents and was contained in court filings in Seattle. Thus far, I don't think anyone has disclosed how much they actually paid for the chain, but it is probably close. Keep up the good work.
Bill Richards
Thanks for setting me straight, Bill. Your first-rate reporting on the Blethens has been essential reading for everyone concerned about this story.
Al Diamon
Apparently Palin's media people said that she was not going to be interviewed by any Palin look-alikes so, WABI got the interview.
Lots of folks are hoping the deal does happen and results in the departure of Connor from PA.
Curious reader (who congratulates you on your consistent efforts informing us of these developments) wonders who is going to finance this deal? There's been a little eruption in the credit markets lately, as I noted when I opened my 401K statements. I am not familiar with the world of high finance, but I hear there is a great reluctance to give out loans in this period. Is this to be what we know in the real estate market as a "short sale" where the buyer takes over the mortgage of someone headed for foreclosure? I don't see much money behind the Cohen-related group.