Snider, Rendell May Seek To Buy Inquirer

PHILADELPHIA - Two Eds – Snider and Rendell – are in an investment group seeking to buy the Philadelphia Inquirer, the Daily News and Philly.com.

The AP said on late Friday afternoon that Snider and New Jersey powerbroker George Norcross are among six business leaders mounting a potential bid for two Philadelphia newspapers.

Former Pennsylvania Gov. Ed Rendell said he is among the non-equity partners in the group that's submitted a letter of interest.

Philadelphia Media Network operates The Philadelphia Inquirer and Philadelphia Daily News. Creditors took over the company after a 2010 bankruptcy sale.

Rendell couldn't confirm a report that two hedge funds now want to sell. But he says a company has been reaching out to potential investors.

Rendell says the group would fight to keep both newspapers open.
He says the group is committed to keeping strong newspapers in the community and less concerned about short-term profits.
Business mogul Raymond Perelman is mulling another bid for Philadelphia's two daily newspapers, more than a year after creditors outbid him at a bankruptcy auction.

Perelman bid $129 million, mostly cash, for The Philadelphia Inquirer, the Philadelphia Daily News and the Philly.com website at the September 2010 auction. Earlier this week, the New York Post reported that Philadelphia Media Network was in play because two hedge funds want to sell their stakes.

Perelman said Friday he is looking at the situation and conceded the newspaper industry is "deteriorating."

But he believes Philadelphia should have a newspaper. He says he might bid "at the right price and the right situation."

Philadelphia Magazine reports that former Gov. Ed Rendell is also interested. His spokeswoman did not return a message Friday.

The New York Post said on Monday that Philadelphia Media Network was for sale for $100 million. In a September 2010 bankruptcy auction, creditors paid $139 million for the newspapers and the Philly.com website. In 2006, the papers and the website were sold for $515 million.

Alden Global Capital, which specializes in buying the debt of companies in financial trouble, may sell its 30 percent stake, according to the Post, which cited an unidentified person close to the situation. Alden Global had been a lead player in the creditors' takeover of the company.

Executives of Philadelphia Media Network did not confirm the weekend report, but said investors in the company regularly rotate their holdings.

The report comes as the Philadelphia newspapers are preparing to leave their flagship headquarters and move to a much smaller space in the former Strawbridge & Clothier building.

The 2010 auction followed a bitter fight for control between creditors and local investors. The creditors prevailed and pledged to avoid layoffs for a year. After the commitment expired last fall, about 30 employees left through either layoffs or voluntary buyouts, the Guild said.

Bob Hall, the company's chief operating officer, declined comment on whether the company was for sale. But he said it wasn't unusual for ownership stakes to fluctuate.