By: Joe Strupp The Tribune Company is selling its two southern Connecticut daily papers, the Greenwich Time and The Advocate of Stamford, to Hearst Corp. for $62.4 million, according to a company release.
Under an unusual arrangement with MediaNews Group of Denver, Colo., the papers will be managed by MediaNews, according to the release.
No further details were released, but Tribune expected the agreement to be finalized in "the next few weeks."
It adds that the transaction does not include the sale of property related to either newspaper, which is expected to be sold at a later date.
Tribune had previously attempted to sell the papers to Gannett Co. Inc., but that deal fell through. It has been trying to unload these papers for some time as part of a wide-sweeping $500 million cost saving initiative.
In March, Gannett agreed to purchase the Greenwich Time and the Advocate for $73 million. But the transaction fell apart in June after an arbitrator ruled the sale would violate a union contract at the Advocate. As part of the deal, the arbitrator said Gannett had to assume existing union contracts at the Stamford paper. Gannett backed out of the deal.
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