Profit uncertainty is about to spell doom for family ownership of one of the nation’s largest newspapers.
According the its Web site, the owners of the San Diego Union-Tribune, Copley Press, are looking for a prospective buyer for the publication and other local holdings in southern California.
The company has been shedding its news assets in recent years, according to the Union-Tribune. In 2005, it sold nine newspapers in Illinois and Ohio to GateHouse Media, and sold the Daily Breeze of Torrance, Calif., to the Hearst Corporation in 2006. The Union-Tribune is the last of Copley’s media holdings.
Right now, though, is a terrible time to sell a newspaper, one analyst told the Union-Tribune.
“You might argue whether or not there is a national recession, but there is no doubt the newspaper industry is in a recession,” Media Analyst John Morton told the newspaper, adding that it would not be surprising if Copley did not get an acceptable offer for the Union-Tribune.
Like the rest of the newspaper business, the Union-Tribune has not been immune to staff cutbacks and falling revenue. In January, the laid off 117 people following a reported 20 percent reduction in circulation, the San Jose Mercury News reported. It also began buying out veteran employees in 2006.
Industry analyst Edward Atorino told the Mercury News that the most likely company to show interest is the A.H. Belo Corporation, who owns and operates the Press-Enterprise in Riverside, Calif., and several other daily newspapers.
A.H. Belo may not be looking to add another property to its lineup, though. The Dallas Morning News reported the company is cutting 500 jobs in an effort to save money.
VoiceofSanDiego.org has a list of the possible suitors for the Union-Tribune.
