John Lynch has a long history of owning and/or managing radio stations in San Diego (and many other markets). Now he is President and CEO of a company buying the city’s daily newspaper, the San Diego Union-Tribune.
The financial backer of the new company, MLIM LLC, is local hotel and commercial property mogul Doug Manchester. Terms of the purchase from Platinum Equity, which purchased the daily from Copley Press in 2009 for a reported price of less than $50 million, were not disclosed. However, the New York Times reported that the price was over $100 million.
Platinum, headed by Tom Gores, has been active in media investments and recently sold a TV property at a nice profit.
Copley had to look long and hard to find anyone even willing to buy the paper in 2009. The eventual price was believed to be based primarily on the real estate value. Since then Platinum claims it has increased the value of the Union-Tribune by rapidly growing online revenues.
RBR-TVBR observation: No broadcaster in their right mind would want to get into the newspaper business. Does John need an intervention?