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Belo to sell Kentucky papers By Lisa Carnahan Dallas-based Belo Corp. announced June 27 that it plans to sell its eight Kentucky newspapers, including the dailies, The Messenger-Inqurier, Owensboro, and The Henderson Gleaner. Also included in the sale are the weekly newspapers and lone radio station the company purchased three years ago, the McLean County News, Franklin Favorite, WFKN-Radio, Union County Advocate, Benton Tribune-Courier, Cadiz Record and Eddyville Herald-Leader. According to a release from Belo, the company will also said a third daily, the Bryan-College Station (Texas) Eagle. Burl Osborne, president of the Belo’s publishing division, said while the newspapers are recognized as among the best community publications in this country, they “do not fit well” with the company’s strategy for the future. Ed Riney, publisher of The Messenger-Inqurier and District 3 KPA boardmember, said his employees had typical questions after the announcement was made: mostly concerning benefits and staffing. “The real answer to those questions right now is ‘we don’t know,’” said Riney. “It’s a valuable property with lots of journalism integrity and I think lots of newspaper companies will be interested. Belo has high standards and we maintained those. Our goal is to continue business as usual, providing good service to our readers and advertisers and caring for our employees as well.” Belo also announced it plans to sells its interest in the Dallas Mavericks basketball team and the sports arena where the team plays. According the company’s press release, the sale of the three daily newspapers is expected to bring at least $110 million in after-tax proceeds. The company’s stock closed at $16.56 the day the impending sale was announced, up 12.5 cents. Whether the Kentucky properties will remain a group is one of the main questions surrounding the sale. “It’s my understanding they (the eight Kentucky papers) are available together or separate,” said Riney. Steve Austin, publisher of the Henderson Gleaner, said any grouping of the papers would be dictated by the buyer. “Right now I’d say it’s 50-50 that we’ll stay together,” said Austin. “There are some parties interested in both the dailies and weeklies, some that are interested in only the dailies and some just the weeklies. I think it could go either way. It’s going to be decided strictly on the bids and how the buyers look at it.” The Henderson Gleaner, the Kentucky weeklies, a radio station that's part of the Franklin Operation (WFKN) and a weekly in Portland, Tenn., were sold to Belo in 1997 by Walt Dear. Austin said Dear was distressed to learn of the impending sale. "I think Walt felt as if he handpicked the Belo Corporation to be his successor," said Austin. "At that time, he and Belo thought it would be a long-term relationship. But, things change and business changes. It just didn't work out the way either side expected." Austin said the sale is expected to be completed by the end of this year but added he "wouldn't be surprised" if it was finalized by Oct. 1. Belo has hired a national brokerage firm, Dirks, Van Essen & Murray of Sante Fe, NM, to handle the sale. Charlie Portmann, editor of the Franklin Favorite, said the weekly papers are hopeful they can remain together as a group. “That’s our hope...but there’s no guarantee,” said Portmann, KPA Boardmember for District 4. “It’s my understanding we’re available together or individually depending on the price. Since the sale to Belo three years ago, the weeklies have operated under the umbrella of the Henderson paper. We have central accounting, circulation, etc. According to Steve (Steve Austin, publisher of the Henderson Gleaner) we have good books and we’re good properties so hopefully we’ll be sold to a good corporation.” Teresa Revlett, general manager of the McLean County News, is optimistic about the sale. “I’m not worried about who will buy us...that it won’t be a quality buyer,” said Revlett who serves as this year’s president of KPA. “I think there are plenty of good owners out there that would be happy to have a quality newspaper. As long as we produce a good newspaper, it doesn’t make a whole lot of difference who the owner is. We work for the communities. Our news and advertising opportunities are dictated by the community and our readers...so we’ve always felt and operated like the community is our boss. We intend to continue that, no matter who the owner is.” Revlett and Portmann echoed similar sentiments concerning the Belo ownership. “It’s been a wonderful company to work for,” said Revlett. “I didn’t think it could get any better than working for Walt Dear, but benefits were great and we've maintained that community connection.” Portmann said one of the biggest benefits of corporate ownership was in buying power. “We had really good buying power, able to negotiate for better newsprint and office supply prices and other major expenses like pressroom supplies,” said Portmann. “Belo was a good company. I’m going to hate to leave it. But like any sale, it could get better - or, it could get worse. We’ll just have to wait and see. For now, it’s business as usual.” |
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