A group led by Lewis Katz and H.F. Gerry Lenfest has won
control of the parent company of the Philadelphia Inquirer, Philadelphia Daily
News and Philly.com with an $88 million bid at an auction Tuesday.
In a statement, the other three owners — George E. Norcross,
William P. Hankowsky and Joseph E. Buckelew — said they declined to submit a
final bid in the court-ordered auction and had agreed to sell their majority
share to Katz and Lenfest. The five businessmen together bought the company in
2012 for $55 million.
“Although we declined to submit a higher bid and will not
purchase the shares of Interstate General Media owned by Messers. Katz and
Lenfest, we are happy for the company’s employees, readers and advertisers that
this issue is now resolved,” the statement said. “It is time to return the
company’s focus to journalism, and away from conflict among its owners.”
This is the fifth time the organization has been sold since
2006. Ownership has been embroiled in a very public feud since last fall, when
Inquirer Editor William K. Marimow was fired by publisher Robert Hall. That
move was supported by the Norcross faction but opposed by Katz. Marimow was
reinstated in late November by a Philadelphia judge. The dispute caused the two
factions of the ownership group to try and dissolve the company with Tuesday's
auction.
The bidding started at $78 million.
With Katz winning the auction, it should be interesting to
see what happens at the publications. Norcross wants hyper-local news and
sports coverage, while Katz supports the investigative reporting favored by
Marimow. It would appear that Marimow is in good standing. The future is less
clear for Lexie Norcross, daughter of George Norcross who was installed as
editor of Philly.com. The 26-year-old created what Inquirer staffers described
as a competing newsroom, which created tension between the web site and its
newspapers.
Source: Philadelphia
Business Journal
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