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.”
Source: Philadelphia
Business Journal
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