Publisher of Austin Paper Only Found Out About Sale Last Week

By: E&P Staff Mike Laosa, publisher of The American-Statesman, told employees late Wednesday that he knew about the paper's proposed sale by Cox Enterprises Inc., for just one week. Cox announced Wednesday that it is looking to sell the Statesman as well as 28 other daily and weekly newspapers in Texas, Colorado, and North Carolina.

Laosa told several hundred employees "at a somber, hourlong newsroom meeting" (in the words of the paper's report) that they might have new owners by the first quarter of 2009 -- which seems iffy considering the current climate for sales.

He added that The Statesman, despite decreasing circulation, has continued to be profitable. "Laosa said the paper's continued financial strength makes it marketable," the paper related.

The same article pointed out, however, that longtime newspaper analyst John Morton said: "This is a terrible time to be trying to sell a newspaper. The sales value of newspapers has probably dropped in half in the last five years. ... There are a lot of newspapers that are up for sale and there are no takers or no one willing to pay what the sellers want.

"This deal could take more than months to do," Morton said. "But there may be some guy with a few billion dollars that he doesn't know what to do with that may step up tomorrow."

Laosa at the meeting was asked what type of entity might buy the paper.
"Anyone who has a checkbook big enough," he said.

The paper's article concluded: "Laosa and [Editor Fred] Zipp said they don't expect changes in daily operations while the paper is for sale. But the newspaper, Zipp said, will continue to reduce staff through attrition. The Statesman has a number of staff members in their 50s and early 60s, people eligible for early retirement, and Zipp was asked about the possibility that the pending sale could cost the news operation valuable experience. 'We're going to go through a period of uncertainty,' Zipp said. 'I can tell you I'm staying until they kick me out the door.'"