Wednesday, October 10, 2012

Old Guard Newspaper Owner Sells Tampa Trib to Newspaper Novice Equity Co.

Channelside in Tampa Florida
(Photo credit: Wikipedia)
The pre-Thanksgiving sales season has begun early, as Los Angeles-based equity investor Revolution Capital Group ("RCG") has acquired the Tampa Tribune from Media General for $9.5 million in what some newspaper analysts are calling a "fire sale."

According to an article by Tribune rival Tampa Bay Times, RCG has established the Tampa Media Group to oversee the Trib, its Web site and affiliated newspapers, in what is RCG's first foray into the newspaper business. Software, manufacturing and telecommunications companies have been RCG's strong suit since its formation three years ago, according to the Times article.  Conversely, the sale, which is expected to yield $2 million net proceeds pre-expenses, signals media conglomerate Media General's severing ties with the newspaper industry after 150 years.

Tribune Publisher William Barker will retain that position under the new ownership. Richmond Newspapers acquired the Tribune in 1966 and subsequently became Media General three years later.
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