'San Diego U-T' Sold to Platinum Equity -- Black Press Involved

By: E&P Staff After nine months of sitting on the auction block, The San Diego Union-Tribune has finally found a buyer.

Beverly Hill, Calif.-based private equity firm Platinum Equity agreed to purchase the daily from The Copley Press. The terms of the transaction were not disclosed. The San Diego Union-Tribune first reported the sale.

In a written statement to the U-T, Harold W. Fuson Jr., an executive vice president at Copley said, "This is a vital business with a long tradition of public service and a pre-eminent position in one of America's finest media markets. At this important juncture, we believe Platinum Equity is the right partner for the Union-Tribune, its employees and the San Diego community."

David H. Black, the head of Black Press, which operates several Canadian newspapers as well as the Akron (Ohio) Beacon Journal, is said to be involved with Platinum Equity, reports the U-T's Thomas Kupper.

Also in a written statement, Louis Samson with Platinum Equity, said: "The Union-Tribune is more than a business. It's an institution in San Diego. But it faces enormous challenge in a period of tremendous upheaval for the newspaper industry. We will bring a strong operational focus that helps ensure the Union-Tribune not only survives in this market, but thrives."

Several other parties were reportedly interested in the paper, including the Tribune Co., MediaNews Group, and the Yucaipa Companies.

The deal is expected to close in the second quarter.

Other newspapers on the block including The Austin American-Statesman are still waiting for buyers. Even those that are interested in acquiring newspapers are having trouble finding financing for such deals. The Blethen family found a buyer for its Portland Press Herald and other Maine newspapers but the purchaser Richard Connor and HM Capital Partners are seeking money to swing the deal.

The local site, Voice of San Diego, got a quick response from Editor Karin Winner and others and reports as follows.
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Union-Tribune Editor Karin Winner broke the news of the newspaper's sale to the newsroom around 11 a.m. today. "She looked delighted," said one newsroom staffer.

"[Winner's] first words were 'This is terrific news,'" said the staffer....

When asked whether she will be staying on as editor, Winner said: "I don't know." She also said she was not made privy to the final sale price.

The sale brought mixed reaction from employees. Some are optimistic, others concerned.

"There hasn't been any leadership, we've had an absentee owner for a long time, now someone's going to come in and try some new things," one employee said. "I think that makes people cautiously optimistic."

Another was worried about being purchased by an equity firm with no history of running a newspaper. But that person still had cause for optimism. "It's better than just hanging on with (David) Copley," said the staffer.