Printer Friendly

NEW YORK POST ANNOUNCES INTENTIONS TO MAKE AN OFFER FOR THE DAILY NEWS

 NEW YORK POST ANNOUNCES INTENTIONS TO
 MAKE AN OFFER FOR THE DAILY NEWS
 NEW YORK, Feb. 13 /PRNewswire/ -- New York Post Publisher and owner Peter S. Kalikow today announced his intentions to make an offer to acquire the New York Daily News under terms and conditions to be disclosed after reviewing the relevant financial information available to prospective buyers of the paper.
 In his statement, Kalikow said, "It is abundantly clear to me, and anyone familiar with the New York newspaper market, that the surest, and perhaps only, opportunity for the Daily News' survival lies in combination with the New York Post."
 The Post publisher observed, "The New York Post is operationally and financially structured to sustain its competitive position. It is profitable and here to stay. And as long as it is, the prospects for the Daily News on a stand-alone basis are not optimistic."
 Kalikow declined to discuss the terms and conditions on which he might acquire the Daily News.
 He stated, "Until we have reviewed the information, both financial and operational, the Post cannot discuss the terms and conditions on which the Post might acquire the Daily News. Nor can we say what a combination of the Post and the Daily News might look like. But paramount in any plan is that we endeavor to save as many jobs as possible and any employees who would leave be treated fairly and equitably."
 Kalikow stressed, "Whatever we do must first and foremost benefit the New York Post and its employees. But we do believe, subject to a review of the financials, that an acquisition of the Daily News by the New York Post, under the right conditions, may lead to certain efficiencies, economies and enhanced profitability, thereby being a plus for the New York Post. However, if this is not the case, no acquisition will occur."
 Kalikow stressed that the Post has a demonstrated ability to bring to the table a unique and open relationship with the unions and their leadership. "Just as we worked together in the Fall of 1990 to ensure the future of the Post, I believe we can work to save the Daily News."
 Continued Kalikow said, "The future of the Daily News depends on someone committed to the New York newspaper market. The Post is firmly committed to precisely this marketplace. Together, the New York Post and the New York Daily News may have a unique opportunity to continue to serve the people of our city."
 Overview from Kalikow
 In his prepared remarks, the Post publisher stressed that the nation and the city are in a deep recession and the economy is bleak with no prospect for recovery in the near term.
 "This has led to significant decreases in advertising lineage for newspapers throughout the country, particularly in the Northeast and New York. Fortunately, the Post has, and will continue to, weather the economic storm because of actions taken and sacrifices made over a year ago."
 But Kalikow believes, "This dire economic situation, coupled with the competitive environment of New York and, most importantly, the need for hundreds of millions of dollars of capital investment at the News, make the News' situation a tough one at best.
 "The Tribune Company, the long time owner of the News, lost hundreds of millions of dollars in recent years and despite repeated pledges, never make the required capital investment to ensure the paper's future. This reflected, we believe, their desire to leave New York," he said.
 He reminded, "In fact, when The Tribune Company decided to sell the Daily News, the company's stock soared and Tribune knew it made a sound economic decision."
 Kalikow continued, "Robert Maxwell was the only serious bidder for the Daily News. Despite his publishing experience and after receiving 67 million dollars from The Tribune Company, investing another 73 million dollars according to the Financial Times of London and incurring over 53 million dollars in trade debt the News, by it's own admission, is still not profitable and continues to lose money. The figure is now close to 200 million dollars in just eight months with still no profit and no new equipment."
 Kalikow stated, "Enough of the past. The only way for the Daily News to survive is in combination with the New York Post. Let's join together and fashion an intelligent plan to save the Daily News on a sound business basis.
 "The New York Post has informed its banks of its intention. Subject to a review of the News' financial information and the development of a sound business plan, the Post will then present this plan to its banks," he explained.
 "We have asked our attorneys to obtain a copy of the available financial information and hope, in short order, to announce further details of our proposal," Kalikow concluded.
 -0- 2/13/92
 /CONTACT: Howard J. Rubenstein of Howard J. Rubenstein Associates, 212-489-6900, for The New York Post/ CO: The New York Post; The New York Daily News ST: New York IN: PUB SU:


JT -- NY098 -- 9901 02/13/92 16:03 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 13, 1992
Words:844
Previous Article:CHRYSLER REPORTS U.S. ASSEMBLY PLANT SCHEDULE FOR WEEK OF FEB. 17
Next Article:EXCEPT FOR SUNSHINE, LOS ANGELES TOURISM ATTRACTIONS INTACT DESPITE RECORD-BREAKING STORMS
Topics:


Related Articles
THE NEW YORK TIMES COMPANY ANNOUNCES AGREEMENTS TO BUY TWO WHOLESALER OPERATIONS
THE NEW YORK TIMES COMPANY COMPLETES PURCHASE OF TWO WHOLESALE DISTRIBUTORS
THE NEW YORK TIMES COMPANY TO CLOSE GWINNETT DAILY NEWS
THE NEW YORK TIMES COMPANY TO CLOSE GWINNETT DAILY NEWS /REPEATING FOR POINTS NEEDED - MOVED EARLIER
DAILY NEWS EDITOR LOU COLASUONNO ANNOUNCES NEW HIRES
Hollinger International Inc. Announces Sale of Remaining US Community Newspapers for $215 Million.
SPANISH-LANGUAGE PAPERS STIR IN L.A., TEXAS, FLORIDA Niche publishing continues to thrie, with new daily in Los Angeles.
NEW YORK CIRCULATION PROBE WIDENS.
Top newspapers by circulation.
Zuckerman matches Murdoch's $580m offer for Newsday.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters