Group of investors will now control the Philadelphia Inquirer and the Philadelphia Daily News
Parking lot baron Lewis Katz and Democratic Party fundraiser George E. Norcross III are among the group of investors who will plunk down $55 million to buy Philadelphia Media Network.
The company controls the "City of Brotherly Love"s' two largest newspapers, The Philadelphia Inquirer and Philadelphia Daily News, as well as the website Philly.com.
In addition to the $55 million price tag, the deal includes $10 million in working capital for operations, according to a report Monday in The Inquirer.
The sale's price is less than half of the $139 million a group of investors paid to buy Philadelphia Media Network in bankruptcy auction in 2010.
Philadelphia Media Network is owned by a group of financial firms led by Alden Global Capital and Angelo, Gordon & Co.
The media company filed for bankruptcy in February 2009, citing falling circulation numbers and about $390 million in debt.
The new ownership group includes Liberty Property Trust CEO William Hankowsky, philanthropist H.F. Lenfest, Holtec International CEO Krishna Singh — most of whom have local ties to Philadelphia.
Katz and Norcross will serve as managing partners of a new parent company called Interstate General Media.
The new owners will keep CEO Gregory J. Osberg and the rest of the Philadelphia Media Network management team in place, according to the Inquirer.
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