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DEENEY VS. DISTEFANO: The Future Of Newspaper Journalism Is ‘Location, Location, Location’

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[Photo by MICHAEL PENN]

DISTEFANO: The creditors hung on and bested the hometown investors because they believe we, the people who put together, distribute and sell the news, features and investigative reporting assembled daily under veteran Inquirer editor Bill Marimow and frugal Daily News boss Mark Frisby can make them more money than if they grabbed the best offer and ran. MORE

DEENEY: One component of the price is the company’s real estate, including its building at 400 N. Broad St. and its printing plant near Conshohocken, which was valued at $30 million. The new owners might ultimately decide to sell the real estate later to recoup more of the $318 million in debt that banks and other financial institutions were owed dude, this is a real estate deal primarily the new owners are betting on a rebound in the real estate market at which point they will convert the inky headquarters into condos. I think they’ll convert the printing press to condos, too, it’s in a pretty sweet spot on River Road in Conshohocken. MORE

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2 Responses to “DEENEY VS. DISTEFANO: The Future Of Newspaper Journalism Is ‘Location, Location, Location’”

  1. deeney Says:

    So weird to see this not even mentioned, I mean it says right on the hedge fund website “we are currently making plays on real estate that we feel has become undervalued in the market collapse.”

    They’re doing exactly the same thing in the RMBS market:

    “We target securities trading at distressed prices with strong collateral profiles.”

    Which means, “all the ‘toxic assets’ you keep hearing about aren’t as toxic as you’ve been lead to believe, and we know which ones you think are, but actually are not.” This is a common hedge fund strategy right now.

    They didn’t buy two newspapers, they added two prime pieces of real estate to their portfolio, end of story.

  2. Joe DiStefano Says:

    Your math’s deficient. Philadelphia + Upper Merion properties combined were worth way under $100 million in 2006, last time Phila Newspapers were marketed. RMBS values are down an average 40 percent since then. The current value of the properties does not nearly equal the offer the new prospective owners turned down. Would only make sense as a very long term real estate speculation (5-10 years plus). There’s lots cheaper ground around. Joe D.

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