Detroit News ownership shakeup, merger rumors

[BShea]

http://www.crainsdetroit.com/article...-shakes-up-top


Report: Detroit News owner may be in merger talks, shakes up top management

Denver-based MediaNews Group Inc., the owner of The Detroit News, is searching for a new CEO in the wake of Tuesday's news that current CEO William Dean Singleton is stepping down amid as part of a senior management shakeup and rumors of a merger.

Singleton, who founded MediaNews in 1983, the nation's second-largest newspaper publisher by total circulation, will remain chairman and focus on "consolidation opportunities in the industry that could benefit MediaNews," according to a statement.

Also, MediaNews President Joseph Lodovic IV announced that he's immediately retiring. Company director Gordon Paris will act as interim president until a permanent replacement is found.

The Wall Street Journal reports that MediaNews' may be in merger discussions with Irvine, Calif.-based Freedom Communications Inc.

[Detroit500]

It seems that the bigger question is whether Gannett succeeds or fails. The Detroit News does not cost any money for Media News to operate - the Media Joint Partnership is required to pay all costs associated with running the paper and pay MediaNews at least $1.9 million each year just to operate the paper. For a beleaguered company like media news, a guarantee of $1.9 million each year is quite lovely. Of course, anyone who believes there will be a joint agreement in 2025 when it expires is delusional.