Part One: New News
Boston Herald stalwart Brian Dowling is out with a report today that Digital First Media, which last week was kicking the tires at Fargo Street, is ready to make an offer.
Third bid’s in for Herald
Bankruptcy auction is Tuesday
Newspaper chain Digital First Media has put in the third bid for the Boston Herald, which will be sold off next week in a court-organized bankruptcy auction.
Lawyers for the Herald confirmed the bid was made by MediaNews Group, the corporate name for Digital First. A representative from the Herald’s bankruptcy law firm Brown Rudnick said the bid is being reviewed to determine whether it qualifies the company for Tuesday’s bankruptcy auction.
No details of the bid are public, but Dowling says that to qualify for the auction, “a new bid must come in at least $600,000 over either of the two existing offers for the paper.”
As our kissing’ cousins at Two-Daily Town previously noted, however, what’s even more crucial than how much is bid, is how the bid has been configured.
Revolution is offering $3 million cash for the company, agreeing to honor $750,000 of paid time off for employees who join the company, and is pledging to pay out $2 million in severance.
Crosstown at the Boston Globe, Jon Chesto reminds us what the deal is with GateHouse.
“GateHouse proposed paying $4.5 million in cash, as well as at least $500,000 in assumed liabilities, including paid time off owed to employees.”
Unless our math skills fail us, that means Herald owner Pat Purcell gets $1.5 million less from a sale to Revolution, while employees at the shaky local tabloid get $2.25 million more.
Let’s see whose pot is sweetest when – if – the details of Digital First’s offer emerge.
Part Two: No News
Dowling also reports today that this week’s auction will be invitation only – and he’s not getting one.
The Herald is refusing to admit one of its reporters to the newspaper’s bankruptcy auction next week, calling the court-organized sale a “private process,” while the paper’s largest union is worried the presence of a reporter could “chill the bidding.”
That rare instance of union-management accord says a lot about what a highwire act this sale has become. Apparently, Dowling now represents the net both sides are willing to work without.