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Billionaire John Catsimatidis Negotiating Buy of Daily News

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After Mort Zukerman’s announcement last week to sell the Daily News, it has been discovered that John Catsimatidis is among the mystery man trying to purchase the struggling news publication.

Catsimatidis, the 66-year-old billionaire confirmed that he has been negotiating with Zuckerman for a month now, according the NY Post.

The talks have been “complicated” but ongoing, Catsimatidis added. And he said there are several others interested in purchasing the publication.

“There might be two or three. Dolan’s probably looking,” Catsimatidis said, referring to Cablevision boss James Dolan. Page Six reported Monday that Dolan has bankers preparing a bid.

Since the Feb. 26 memo to Zuckerman’s employees, several other rival bidders have stepped forward to sign nondisclosure agreements. Though there is no assurance that a sale will be the outcome, but the competitors are in talks with Zuckerman.

Catsimatidis owns Manhattan’s Gristedes supermarkets and was a Republican mayoral candidate in 2013. He is also a big advertiser in newspapers with vast power in the political world.

Catsimatidis said he also would not rule out teaming up with another suitor: “We’re business people; we look at things and see what works.”

Zuckerman, 77, is optimistically hoping to receive $200 million for his money-losing, besieged news publication. He had invested $120 million in the printing plant and has already faced years of losses. The asking price would make up for these setbacks.

Most agree Zuckerman’s price will be hard to meet because of the News’ declining state of advertising and circulation. The buyer would have to invest millions to keep the publication afloat.

Plus, the News is the third or fourth paper in the city these days, the observers said.

The talks are also complicated because the News has union contracts with mailers, drivers and pressmen. While a new owner would not automatically be bound by the old contract, he would have to come to new understandings.

The Daily News brings in profits of approximately $175 million a year but suffers from annual losses estimated at $20 million to $30 million.

Zuckerman’s profitable commercial printing operation prints about 80 outside publications, including the freebie daily Metro and the weekly Community News Group and The Forward.

Zuckerman and his then-partner Fred Drasner bought the News from the bankrupt estate of “bouncing Czech” Robert Maxwell for about $36 million in 1993. Most of that price was in assumed liabilities, not cash, according to the NY Post.

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The post Billionaire John Catsimatidis Negotiating Buy of Daily News appeared first on JP Updates.


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