Sunday, November 8, 2015

Union's offer to buy Philadelphia Daily News rejected



For the second time this year, the Newspaper Guild Local 10, which represents more than 400 employees in editorial, advertising, circulation and finance at Philadelphia Media Network, has offered to buy the Philadelphia Daily News. And for the second time, that offer has been rejected.


A PMN spokeswoman indicated late Thursday afternoon that the proposal would be rejected and then the Philadelphia Inquirer reported that the company's attorney had officially informed the Guild that it would not be selling the Daily News.
For the second time this year, the Newspaper Guild Local 10, which represents more than 400 employees in editorial, advertising, circulation and finance at Philadelphia Media Network, has offered to buy the Philadelphia Daily News.

For the second time this year, the Newspaper Guild Local 10, which represents more than… more

“A letter was sent from our attorney to the company offering for a second time for the company to sell the Daily News to the Newspaper Guild,” Local 10 Executive Director Bill Ross said.

“The Guild believes that selling the Daily News to the Guild will be a `win win’ for PMN and the Guild’s members, as it will help mitigate the loss of employment for a substantial number of individuals and it will help PMN shed an asset that, based on the number of layoffs of Daily News employees and other purported statements from PMN personnel, it appears PMN has little interest in,” said the letter from attorney Lisa A. Lori to PMN publisher Terry Egger and legal counsel Larry Weilheimer.

In January, the Guild made a similar offer and PMN owner Gerry Lenfest declined in a one-sentence response. In response to a Philadelphia Magazine Tweet initially reporting the most recent offer, PMN spokeswoman Amy Buckman indicated that Lenfest has not changed his thinking.

    @joelmmathis Mr. Lenfest has consistently made it clear he has no interest in selling the Daily News.
    — Amy Wilen Buckman (@AmyWBuckman) https://twitter.com/AmyWBuckman/status/66237806848...">November 5, 2015

The offer comes a day after 46 PMN employees were laid off Wednesday, including 17 of 60 Daily News editorial staffers. That list included 10 reporters and virtually the entire copy desk. There were 17 Philly.com staffers and 12 Inquirer employees who were also laid off.

From a business perspective, it might not make sense for Lenfest to sell the Daily News and create a competitor for his two other sister properties — the Philadelphia Inquirer and Philly.com. It might make more sense to either invest in the Daily News or phase it out like so many other newspaper companies did when faced with a similar situation.

“We think competition is good,” Ross said.

As for whether the Guild had the funds to buy the Daily News, Ross said “that’s a possibility.”

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