Anything I have to say about Digital First Media today is speculation or observation but I will speculate and observe.
(I’ll explain in some detail at the end of this post what I used to know about DFM operations and strategy, and what I don’t know now.)
A tough sell
My first observation: Selling this scattered company and its diverse properties has probably been much more difficult than anyone thought last year when executives decided to pursue a sale. My first knowledge of plans to sell the company was that they would likely sell it in pieces. I think the difficulty of that job led to an effort to sell it in one piece, as Ken Doctor reported last year. That led to a pending $400 million purchase by Apollo Global Management. Ken’s speculation – more informed than mine, but probably not coming from DFM sources – is that the deal fell through over price.
I think DFM CEO John Paton, Chief Operating Officer Steve Rossi (who will become CEO take over the company’s reins in July) and whoever is making decisions for Alden Global Capital, the hedge fund that owns DFM, have decided that some individual parts of the company will attract higher value separately. I think they’ve decided the higher values of some individual pieces will be worth the trouble of operating and eventually selling or shutting down the properties that would be more difficult to sell, or possibly operating a reduced company after selling the most attractive parts.
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The Buttry Diary 