Monday, February 04, 2008
Pocono Record source: The Lynetts are frontrunners to buy the paper from Rupert
Our Pocono Record correspondent reports: "After a long time trying to sell the Ottaway Newspapers as a group, Murdoch's people have given up because none of the potential chain buyers wanted all of the papers. So now Murdoch is selling them off one by one. Groups of investors, local and on Wall Street are being put together bids for each paper. That means that the Lynetts have a very good chance at the Pocono Record. Although the Record will be expensive, the Lynetts are in a position to save bundles as owners of the Record. They can combined their accounting and payroll at Scranton. They can sell a powerful combo into the fast growing and prosperous Monroe County. They can print the paper in Scranton and truck it to Stroudsburg saving millions, and the list goes on. This means they will be a position to bid higher than any other group for the Record. For months word was that Lee and Gannett we on the short list, but now each Ottaway paper will be sold one by one to the high bidders. Ofcourse the chains will still be in the running for individual buys. The Lynetts have express great interest, and they held a large meeting this summer with Monroe biggies to scout the territory. The Lynetts don't like to pay top dollar usually, but the Record is such a good prize for them that betting is they would pay up for the paper whose market value is some $33 million. None of this bodes particularly well for upper management in Stroudsburg."