Freedom Communications Replaces CEO

By: Gary Gentile, AP Business Writer (AP) Freedom Communications Inc. on Thursday promoted broadcast president Alan Bell to chief executive as part of a broader plan to restructure the private media company.

Bell replaced Samuel Wolgemuth, who resigned under pressure from owners of the media group to provide higher profits.

"I made this decision in the best interest of the company," Wolgemuth said in a news release. "The recent decision by our family shareholders shows a clear desire for change and that change needs to start at the top of management."

As broadcast division president, Bell, 70, has overseen the group's eight network affiliates. He said Thursday his knowledge of the company and the Hoiles family that owns it will aid him in his task.

"I know the place. I know the players," Bell said in an interview. "Watching it tear itself apart is tough. If I think I can bring it together and keep the momentum going, I'd like to."

The company struggled in recent months as some descendants of the company's founder, R.C. Hoiles, have been trying to sell their shares.

Tim Hoiles, a grandson of the founder and member of the board of directors, had lobbied for Wolgemuth's replacement and pushed for the company to be sold. Hoiles blamed Wolgemuth for the company's recent poor financial performance.

Last year, Freedom lost $94 million before taxes and $64 million after taxes from one-time losses on discontinued magazine and Internet investments.

Two weeks ago, family members decided against selling the company and to find a way for fourth-generation members to raise cash to buy out older shareholders.

"I have watched some members of the family grow up and I have a great sense of wanting to see them achieve their goals," Bell said. "I'd like to be able to help them keep the company and make it stronger."

Bell, who joins the company's board, said he will leave it up to family members to decide the company's ultimate fate. "The question of the company's ownership belongs to the people who own it," he said.

R. David Threshie, chairman of Freedom's board, praised Wolgemuth, saying the departing executive had helped the company weather difficult economic times.

Freedom, one of the few remaining family-owned media companies, reported Thursday that its financial performance for the first six months of this year improved dramatically from the same period last year.

The company, which owns 28 daily and 37 weekly newspapers in addition to its television stations, reported a pretax profit of $23 million in the first six months of this year compared to a loss of $55 million in the same period last year, the company said.

Freedom is a private company and does not publish its full financial information.

Among Freedom's larger daily papers are The Orange County Register in California, The Gazette in Colorado Springs, Colo., and the Tribune papers in suburban Phoenix. The company also publishes papers in Texas, Florida, New Mexico, North Carolina, Ohio, Illinois, Missouri, and Indiana.

The company owns television stations in Michigan, Florida, Rhode Island, New York, Oregon, Tennessee, and Texas.