Printer Friendly

THE NEW YORK TIMES COMPANY TO CLOSE GWINNETT DAILY NEWS /REPEATING FOR POINTS NEEDED - MOVED EARLIER

 THE NEW YORK TIMES COMPANY TO CLOSE GWINNETT DAILY NEWS
 /REPEATING FOR POINTS NEEDED - MOVED EARLIER
 NEW YORK, Aug. 24 /PRNewswire/ -- The New York Times Company (AMEX: NYT) announced today that it intends to close The Gwinnett Daily News, a newspaper in Gwinnett County, Georgia, a suburb of Atlanta, and sell the residual property to Cox Enterprises, Inc., publisher of The Atlanta Journal and Constitution. The proposed transaction is being reviewed by the Justice Department. The company's two other Georgia newspapers -- The Winder News and the twice weekly Forsyth County News -- are not included in the sale.
 The company acquired The Daily News in July 1987 and moved it to a new facility in 1990. The newspaper has not earned a profit since its acquisition. The proposed transaction is expected to reduce the company's earnings by approximately $.45 per share in the third quarter of 1992.
 For the year ended Dec. 31, 1991, The Daily News had average daily circulation of 50,589 copies and Sunday circulation of 44,321 copies.
 "The decision to close The Daily News has been painful," said Walter E. Mattson, president and chief operating officer of The New York Times Company. "We are proud of the fine job performed by our employees in Gwinnett. They produced an excellent newspaper and fought a tough battle against a very aggressive competitor. Unfortunately, in spite of all of their efforts, the newspaper consistently lost money with no hope of reversing those losses."
 At the time of the Times company's acquisition of The Daily News, Gwinnett County was one of the fastest growing suburban markets in the country. The company's acquisition strategy had been to invest in The Daily News and become the dominant newspaper in the county. Mattson explained: "We felt that Gwinnett County would increasingly develop an identity separate from Atlanta, and that it could support a strong local newspaper. At the same time, we expected the Atlanta newspapers' broader metropolitan focus to continue to serve other reader and advertiser needs in the county. However, several factors prevented the Company from achieving its objectives. A national recession reduced advertising revenues for newspapers everywhere, including Atlanta and Gwinnett County. The growth of Gwinnett County slowed. Most importantly, the Atlanta competition became very aggressive.
 "We conducted lengthy and exhaustive analyses of our strategic options, including both expansion and retrenchment strategies," Mattson said. "Unfortunately, none of these strategies offered any hope of long-term success. Despite our best efforts, we saw no realistic way to reverse the operating losses."
 Unable to devise a strategy to make The Daily News profitable, the Times Company engaged a newspaper broker, Dirks, Van Essen & Associates, to sell the property. Dirks contacted more than 40 potential purchasers, including all of America's leading newspaper publishing companies. The company's search failed to attract any bidders who expressed any interest in keeping the newspaper open. Most cited competitive and market factors as the primary reasons for their lack of interest.
 The Times Company earlier had placed a hiring freeze on its Regional Newspaper Group, and will now be able to offer employment opportunities at other Times Company newspapers to many Daily News employees. Those Daily News employees who do not stay with the Company will receive separation pay and professional counseling to help them find employment elsewhere.
 The company, a diversified communications company with 1991 revenues of $1.7 billion, operates newspapers, magazines, broadcast stations and information services. The company also has minority equity interests in three forest products companies.
 -0- 8/24/92 R
 /CONTACT: Nancy Nielsen, 212-556-7078, William Adler, 212-556-7077, for the New York Times/
 (NYT) CO: The New York Times Company; The Gwinnett Daily News ST: New York, Georgia IN: PUB SU:


SH -- NY056 -- 2642 08/24/92 14:32 EDT
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:Aug 24, 1992
Words:625
Previous Article:/SECOND ADD -- NY009 -- BACKGROUNDER/
Next Article:VARLEN REPORTS SUBSTANTIAL EARNINGS AND SALES GAINS FOR SECOND QUARTER AND SIX MONTHS; TRANSPORTATION SEGMENT PACES GROWTH
Topics:


Related Articles
THE NEW YORK TIMES COMPANY ANNOUNCES AGREEMENTS TO BUY TWO WHOLESALER OPERATIONS
NEW YORK POST ANNOUNCES INTENTIONS TO MAKE AN OFFER FOR THE DAILY NEWS
THE NEW YORK TIMES COMPANY COMPLETES PURCHASE OF TWO WHOLESALE DISTRIBUTORS
DAILY NEWS BOARD OF DIRECTORS VOTES TO ACCEPT PURCHASE OFFER FROM CONRAD BLACK
THE NEW YORK TIMES COMPANY TO CLOSE GWINNETT DAILY NEWS
THE NEW YORK TIMES COMPANY CLOSES GWINNETT DAILY NEWS
THE NEW YORK TIMES COMPANY IS HAVING DISCUSSIONS TO SELL TWO WEEKLY NEWSPAPERS IN GEORGIA
SWARTZ-MORRIS MEDIA ACQUIRES TWO WEEKLY NEWSPAPERS IN GEORGIA FROM THE NEW YORK TIMES COMPANY
THE NEW YORK TIMES COMPANY DISCUSSES POSSIBLE SALE OF SEVERAL SMALL REGIONAL NEWSPAPERS
THE NEW YORK TIMES COMPANY DISCUSSES POSSIBLE SALE OF SEVERAL SMALL REGIONAL NEWSPAPERS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters